CIFL objects to CB licence cancellation move; suggests alternatives

Central Investments and Finance Plc is objecting to the Central Bank’s decision to cancel its licence.

In a disclosure to the CSE, the company said the CIFL Board lodged an objection as per section 37 (2) of the Finance Business Act.

“Our objections were primarily based on legal grounds and also stated several others based on factual grounds,” said CIFL, which had a 14-day window to object following the Central Bank decision. 

The company has requested the Monetary Board of the CBSL to revoke its decision to cancel the licence of the company; the Monetary Board to favourably consider the proposal made by the investor and or put in place some other appropriate methodology for the restructuring of the company. Alternatively, CIFL has said the Central Bank should assist the company to recover the possible assets through litigation already instituted by the company while executing the other procedures as per Section 25 of the Act.

As a final alternative, the Central Bank should act in terms of Section 32 of the Act while implementing the Monetary Board decision which was published on 18 October 2016.