The maximum Loan-to-value (LTV) ratio for vehicle leasing has been increased from 70% to 90% with effect from Monday (Oct. 05), Finance Minister Ravi Karunanayake said today.

Earlier the Central Bank on September 14 directed banks, finance and leasing companies to follow new leasing rates which have been set at a maximum 70 per cent per vehicle.

Earlier potential vehicle owners could lease vehicles at 100 per cent of the value of the vehicle, which had led to surge in imports and traffic jams on Colombo roads.