Banking and Finance Economy & Growth

CBSL caps gold-backed loans at 70% LTV

The Central Bank of Sri Lanka (CBSL) has introduced a maximum loan-to-value limit for loans secured by gold.

From today (25), licensed banks and finance companies must restrict such loans to 70% of the gold’s value.

CBSL said the move aims to strengthen financial system stability and manage risks.

The decision follows a recent increase in gold-backed lending.

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