Sri Lanka, May 25 -- The Central Bank of Sri Lanka took steps to limit the maximum loan-to-value (LTV) ratio for credit facilities granted against the pledge of gold articles, aiming to ensure the stability of the financial system and mitigate risks.

Signed by Central Bank Governor Dr P Nandalal Weerasinghe, these new Central Bank directives, bearing No. 02 of 2026, take effect from 25 May 2026.

According to these new orders:

1.

Imposed maximum loan limit: Effective from 25 May 2026, credit facilities granted by all licensed commercial banks, licensed specialised banks, and licensed finance companies (LFCs) against the pledge of gold articles must be subject to a maximum limit of 70% of the value of those gold articles. This limit app...