Not that I know of.
To test it I’ve created bigger .xlf file (around 40KB) and that played just fine - it’s not truncated and seems to be displaying all the text I’ve put on the layout.
The above is on 1.8.1 (CMS and player), but I don’t think we’ve changed anything in regards to layout .xml files.
Other than the file being truncated is there any error message on status window?