CBSL Tightens Vehicle Loan Limits, Introduces Gold Credit Restrictions

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.