The Central Bank of Sri Lanka (CBSL) had directed Non-bank Financial Institutions to grant loan facilities up to 80% for registered vehicles that have been used locally for more than a year after first registration.
Supervision of Non-bank Financial Institutions, CBSL Director J.D.S.J. Nanayakkara said notice was issued following the amendments to directions on loan to value ratios for credit facilities granted for motor vehicles on February 17, under section 34 of the Finance Leasing Act, No.56 of 2000.
Accordingly, the CBSL issues directions for implementation of loan to value ratios on credit facilities granted by Specialized Leasing Companies (SLCs) for the purchase or utilization of motor vehicles.
Earlier, (April 2020), the CBSL said a loan could only be given up to 70% for a car that was used for more than a year in Sri Lanka, and 90% for a car that was used lesser than a year.
However, the vehicle imports have been suspended since March 19, 2020, and continue till date.
(Daily Mirror)