The Central Bank has issued a new directive under the Central Bank Act, revising loan-to-value (LTV) ratios for vehicle financing, effective from July 17, 2025.
The changes are intended to enhance macroprudential policy making, mitigate systemic risks, and harmonize existing credit limits, the Central Bank said in a statement.
Under the new directive, the previously higher 90 percent LTV ceiling for electric vehicles has been removed.
The LTV ratio for cars, sport utility vehicles (SUVs), and vans has been increased to 60 percent from the previous 50 percent.
For three-wheelers, the LTV ratio has doubled, rising from 25 percent to 50 percent.
Vehicles used for taxi services or similar commercial purposes are now capped at 70 percent.
Meanwhile, the LTV ratio for commercial vehicles has been reduced to 80 percent from the earlier 90 percent.
Additionally, cars that have been registered and in use within Sri Lanka for more than one year are now subject to a 70 percent LTV cap. (Newswire)
