CB considers cancelling Sinhaputhra Finance license

Saturday, 31 August 2019 00:01 -     - {{hitsCtrl.values.hits}}

  • Company appeals to Monetary Board, says negotiating with investors to revive business 
  • CB says Monetary Board will make decision and notify in due course

Beleaguered Sinhaputhra Finance has appealed against the move by the Central Bank to cancel its license and informed the monetary authority that it is negotiating with a consortium of investors to revive the company. 

The Central Bank in a stock market filing on Friday said it had informed Sinhaputhra Finance of the license cancellation but under the Finance Business Act the company had submitted its objections to the Monetary Board within the 30 day appeal period. 

“The Monetary Board of the Central Bank of Sri Lanka, having considered the critical financial condition and the continuous non-compliances with the foremost directions issued under the Finance Business Act No.42 of 2011 (FBA) in terms of subsections (e) and (g) of Section 37 (1) of the FBA, has issued a notice of cancellation of the license granted to Sinhaputhra Finance PLC to carry on finance business,” the Central Bank said in the filing.  

“However, in terms of Sections 37 of the FBA, SINF has the right to submit its objections of the Monetary Board for the issuance of the notice of cancellation within 30 days of the date of such notice giving reasons as to why the license issued to SINF should not be cancelled. SINF has submitted its objections within the time frame stipulated in the FBA to the Monetary Board. It has also been informed that the company is negotiating with a consortium of investors, who has expressed their interest in investing and reviving SINF. As per the provisions in the law, the Monetary Board will have to consider the objections tendered by the company and determine whether to withdraw the notice of the cancellation of cancel the license,” he added.  

Accordingly the decision of the Monetary Board regarding this matter will be notified in due course, the Central Bank said.