The Central Bank of Sri Lanka (CBSL) has revised the maximum loan-to-value (LTV) ratio for credit facilities used to purchase motor vehicles, effective yesterday(09).

The CBSL has streamlined the categories for licensed financial institutions into two main groups. 

The maximum LTV ratio for commercial vehicles has been reduced to 70 per cent (previously 80 per cent). 

For private vehicles, including cars, vans, three-wheelers, and others, the maximum LTV ratio is now 50 per cent (previously 60 per cent for private cars/vans).

The move aims to exert macroprudential control over credit expansion for motor vehicle purchases.