Central Bank Further Reduces Vehicle Loan Limits; New Restrictions Effective From Today
The Central Bank of Sri Lanka has announced that new restrictions on vehicle loan limits will come into effect from today, Monday (25).
Accordingly, the maximum loan-to-value ratio for commercial vehicles has been reduced from 70% to 60%.
This means that banks and financial institutions will now be able to provide loans covering only up to 60% of the value of a commercial vehicle, compared to the previous 70%.
Meanwhile, the maximum loan limit for personal vehicles including motor cars, SUVs, vans, and three-wheelers has been reduced from 50% to 40%.
The Central Bank had previously revised these loan limits in 2025 as well.
Before July 17 last year, the maximum loan limit stood at 80% for commercial vehicles and 60% for motor cars and vans.
Later, on November 7, 2025, the limits were further reduced to 70% for commercial vehicles and 50% for cars, vans, three-wheelers, and other vehicles.
Considering the current economic conditions, the Central Bank has now introduced another revision, reducing the maximum loan limits to 60% for commercial vehicles and 40% for personal and other vehicles with effect from today.
