What is the Central Bank of Sri Lanka (CBSL)?
The Central Bank of Sri Lanka — the regulator setting macroprudential rules for vehicle financing. CBSL's July 2025 directive capped motor-vehicle loans at 60% loan-to-value, requiring buyers to pay a minimum 40% cash down payment.
Also known as: Central Bank of Sri Lanka, Sri Lanka central bank
What is CBSL?
CBSL stands for the Central Bank of Sri Lanka (Sri Lanka’s central bank, founded 1950, headquartered in Colombo). For motor-vehicle buyers, CBSL matters as the regulator setting the rules of vehicle financing.
Why CBSL matters for car buyers
The most direct CBSL impact on Sri Lankan car buyers in 2025-2026 is the 60% loan-to-value (LTV) cap introduced by Direction No. 04 of 2025, effective July 2025. Under this directive:
- Banks and NBFIs cannot finance more than 60% of a vehicle’s landed value
- Buyers must pay a minimum 40% cash down payment
- The cap applies to both leasing and hire-purchase agreements
- No exceptions for personal-use motor cars
CBSL also publishes the daily indicative exchange rate that customs use for converting JPY-denominated CIF values to LKR at the time of clearance. The CBSL JPY/LKR rate hovers around 2.10–2.20 depending on market conditions.
Where to verify CBSL rules
- Official site: cbsl.gov.lk
- Latest LTV directive: Direction No. 04 of 2025
For more on the LTV cap specifically, see our LTV cap glossary entry.
Related terms
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LTV cap (60%)
A regulatory cap on motor-vehicle loans set by the Central Bank of Sri Lanka effective July 2025. Banks and NBFIs can finance up to 60% of the vehicle's landed value, requiring a minimum 40% cash down payment from the buyer.
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NBFI
Non-Bank Financial Institution — leasing and finance companies that provide motor-vehicle credit alongside or instead of banks. NBFIs hold the majority of Sri Lankan motor-vehicle leases. Major players include LOLC, LB Finance, People's Leasing, Pan Asia Bank and Seylan.
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