The Loan to Value (LV) ratio in respect of registered vehicles has been increased by the Central Bank of Sri Lanka.
The LV ratio, which has been used in Sri Lanka for more than one year after the first registration, has been revised from 70% to 80%.
According to the Daily FT, Motor trade analysts have predicted that the increase will help the market, which remains affected due to the existing import restrictions and economic issues as a result of the COVID-19 pandemic.
According to the Central Bank, import of personal vehicles in 2020 saw a drop of 65% to US$ 283 million from US$ 815.7 million in 2019.
The registration of vehicles overall also saw a drop of 45% to 202,628 in 2020, while motor cars declined by 45% to 21,021. (NewsWire)