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CBSL tightens vehicle loan limits to curb financial sector risk
Daily FT
|November 10, 2025
THE Central Bank of Sri Lanka (CBSL) has tightened credit conditions for vehicle financing by reducing the maximum loan-to-value (LTV) ratios that banks and finance companies can offer, effective 8 November 2025.
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Under the new Directions No. 03 of 2025 issued by Governor Dr. Nandalal Weerasinghe, the LTV ratio for commercial vehicles has been reduced to 70% from 80%, while the ratio for motor cars, vans, and SUVs has been cut to 50% from 60%.
Three-wheelers remain capped at 50%, while credit for any other vehicle types has been lowered to 50% from 70%.
The new framework applies to all Licensed Commercial Banks, Licensed Specialised Banks, Licensed Finance Companies (LFCs), and Registered Finance Leasing Establishments (RFLEs). It replaces CBSL Act Directions No. 02 of 2025.
This story is from the November 10, 2025 edition of Daily FT.
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