Sri Lanka, May 25 -- New directives revising the maximum loan-to-value (LTV) ratios for credit facilities provided for the purchase or use of motor vehicles were issued by the Central Bank of Sri Lanka.

Signed by Central Bank Governor Dr P Nandalal Weerasinghe, the new orders take effect from today (25), thereby cancelling the previously effective Central Bank Direction No. 03 of 2025.

According to the notification, these new limits apply to all licensed commercial banks, licensed specialised banks, licensed finance companies (LFCs), and registered finance leasing establishments (RFLEs).

Finance leases, hire purchase facilities, and vehicle loans are included in this directive.

Under the new amendment, the maximum LTV limits to be con...