Central Bank : limit credit for cars

FXX · 1 Central Bank : limit credit for cars Wed Mar 14, 2012 5:15 pm

FXX

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Sri Lanka's central bank has asked banks to limit credit to buy motor cars, in a bid to reduce imports, as the country faced balance of payments pressure and lost more than a quarter of its foreign reserves.

The Central Bank said vehicle dealers had built up large inventories of cars over the past few months and banks may "prudently consider the limitation of credit for the import of motor vehicles, which would, in turn, lead to the easing of pressure on import expenditure."

Spot US dollar was quoted around 124.60/80 rupees in afternoon trade.

Sri Lanka has in the past jacked up taxes on goods considered by rulers and state officials to be 'luxury' for ordinary citizens, including motor cars which they get either completely tax free or at tax-slashed prices.

LBO

Monster · 2 Re: Central Bank : limit credit for cars Wed Mar 14, 2012 5:18 pm

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There is another discussion going on related to this article. For your information,

http://forum.srilankaequity.com/t15885-dimo-31122011-quarter-results#110700

smallville · 3 Re: Central Bank : limit credit for cars Wed Mar 14, 2012 5:43 pm

smallville

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Well too much of vehicles on the road but then again u cannot limit someone's right to own a car..
On another thread I mentioned that even an average person with a salary of abt 60K now cannot maintain a car apart from a Maruti 800.. Max an ALTO..

Further if the loans and leases are made limited I fear the profitability of all these financial institutions may dip too..

In one way the fuel prices are not stable. The alternative is to import hybrids and find alternative fuels.. Even we heard so much of hype on the researches going on but no outcome..

Have any of u heard an alternative fuel being produced?

lemuria · 4 Re: Central Bank : limit credit for cars Wed Mar 14, 2012 7:10 pm

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they may touch customs duty on MV again. If Exc rates crisis worsens.

Roboticfx · 5 Re: Central Bank : limit credit for cars Fri Mar 16, 2012 7:58 pm

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@smallville

yes, hydrogen fuel cells are in use in several countries. A sri lankan has found a method to use hydrogen for a normal engine with few simple changes. It reduces the petrol or diesel more than 50% as I know. However, at the present no news about it. But it is a good invention.