Fitch says Sri Lanka’s lending curbs may strengthen finance sector stability

Shalini
May 28 2026
68

Fitch Ratings stated that Sri Lanka’s tighter restrictions on vehicle and gold-backed loans could improve lenders’ risk profiles, especially among finance companies.

The new measures introduced by the Central Bank of Sri Lanka lower loan-to-value caps on vehicle financing and gold-backed lending.

Fitch noted that the move could reduce risks linked to falling collateral values and borrower defaults, although it may slow lending and earnings growth for some institutions.

Source: The morning