Leasing facility rates for motor vehicles revised
November 8, 2025 06:59 pm
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 ratio for commercial vehicles to 70% and for private vehicles to 50%.
In July, the CBSL had set the maximum LTV ratios for leasing facilities at 80% for commercial vehicles, 60% for private vehicles, 50% for three-wheelers, and 70% for other vehicles.
However, while the LTV ratios were previously presented under four categories in July, the latest revision has consolidated them into two main categories.
One category has been divided into commercial vehicles and the other category has been divided into cars, vans, three-wheelers and other vehicles.
