Sri Lanka, Nov. 8 -- The Central Bank of Sri Lanka (CBSL), in its capacity as the Macroprudential Authority has issued directions to licensed commercial banks and licensed specialised banks, Licensed Finance Companies (LFCs) and Registered Finance Leasing Establishments (RFLEs) for the implementation of maximum caps on loan-to-value (LTV) ratio in respect of credit facilities granted for the purpose of purchase or utilization of motor vehicles.

With effect from today (08), credit facilities granted by every licensed bank, LFC and RFLE for the purpose of purchase or utilization of motor vehicles shall not exceed the following percentages of the value of such vehicles, the CBSL announced.

Accordingly, the CBSL has revised the maximum LTV ...