Monetary Board of the Central Bank of Sri Lanka, has decided to cancel the license issued to Sinhaputhra Finance PLC under the Finance Business Act No. 42 of 2011 (FBA)FBA.
The Company in a stock exchange filing informed that it has received a notice of cancellation of license granted By the Central Bank to carry out finance business under the FBA as the company was facing liquidity crisis.
Further, the Director of the Department of Supervision of Non- Bank Financial Institutions of the Central Bank has decided to cancel the Certificate of Registration of Sinhaputhra Finance as a Registered Finance Leasing Establishment under the provisions of the Finance Leasing Act No. 56 of 2000 (FLA).
However, Sinhaputhra Finance says that it has submitted an objection against the cancellation of license and a comprehensive capital plan backed by an investor who has demonstrated financial credulity of meeting the regulatory capital requirement has been submitted to the monetary board.
Sinhaputhra Finance PLC is awaiting the response of the monetary board towards this end.