The Central Bank of Sri Lanka (CBSL) has announced new directions to tighten lending regulations for both gold collateral and vehicle financing, effective May 25, 2026. These measures aim to promote careful lending and safeguard financial system stability by mitigating potential risks from rapid loan growth. Under the new rules, the maximum loan-to-value (LTV) ratio for credit facilities secured by gold will be capped at 70%. For vehicle financing, the maximum LTV ratio for commercial vehicles has been reduced to 60%, down from 70%. These directives were issued by CBSL Governor Dr. P. Nandalal Weerasinghe.
The Pulse
EconomyPolitics3h ago
CBSL Imposes Stricter Loan Limits on Gold and Vehicle Financing
TLDR
CBSL tightens lending rules for gold and vehicle loans.
Max LTV for gold loans set at 70%.
Max LTV for commercial vehicles reduced to 60%.
Effective May 25, 2026.