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CBSL Tightens Vehicle Loan Limits, Introduces Gold Credit Restrictions
The Pulse
EconomyPoliticsHOTSunday, May 24, 2026

CBSL Tightens Vehicle Loan Limits, Introduces Gold Credit Restrictions

TLDR

  • CBSL cuts vehicle LTVs: 60% for commercial, 40% for private.

  • Gold pawning LTV capped at 70%.

  • Used vehicle loans limited to 60% LTV.

  • New loan limits effective May 25, 2026.

The Governing Board of the Central Bank of Sri Lanka (CBSL) has decided to tighten the maximum Loan-to-Value (LTV) ratios applicable to credit facilities granted for motor vehicles. These new regulations, aimed at promoting prudent lending practices and safeguarding financial resilience, are set to take effect from May 25, 2026. The directive will apply to all licensed commercial banks, specialized banks, finance companies, and registered finance leasing institutions. In addition to vehicle loans, the CBSL has also introduced a maximum LTV ratio for credit facilities secured by gold.

3 Updates

Update #4\u00b7 May 26 · 11:16 AM

Vehicle importers predict a drop in sales and imports, with potential price hikes, due to the CBSL's revised loan limits. The loan facility for vehicles used for over a year post-registration is now capped at 60%. The 40% LTV for private vehicles is noted as significantly impacting ordinary citizens' ability to purchase vehicles.

Update #3\u00b7 May 25 · 4:01 AM

Effective May 25th, the Central Bank of Sri Lanka (CBSL) has tightened Loan-to-Value (LTV) ratios for vehicle loans. The maximum LTV for commercial vehicles has been reduced by 10% from 70% to 60%. Furthermore, the LTV for private vehicles has been decreased from 50% to 40%. These measures, alongside new restrictions on gold-backed credit facilities, are aimed at promoting prudent lending practices.

Update #2\u00b7 May 25 · 2:46 AM

The Central Bank of Sri Lanka (CBSL) has announced new loan-to-value ratios for vehicle financing and gold pawning. The maximum loan limit for gold pawning is now 70% of the item's value. For commercial vehicles, including motor cars, SUVs, vans, and three-wheelers, the maximum loan limit has been set at 60% of the vehicle's value.

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