Sri Lanka budget proposes slashing car, trishaw loans
ECONOMYNEXT – Sri Lanka’s budget for 2017 has proposed slashing the loans given to buy car loans to 50 percent of the value from the current 70 percent and 25 percent to three wheelers.
Banks and finance companies will be allowed to give up to 50 percent for vans. For commercial vehicles (trucks and lorries) up to 90 percent would be allowed.
However mandating loan-to-value ratios are a function of the Central Bank.
The monetary board has to decide on the matter and issue a direction to banks. (Colombo/Nov11/2016)