Sinhaputhra Finance PLC has appealed against the move by the Central Bank of Sri Lanka to cancel its license and informed the industry regulator that it is negotiating with a consortium of investors, who has expressed their interest in investing and reviving the company.

“A comprehensive capital plan backed by an investor who has demonstrated financial credibility of meeting the regulatory capital requirement has been submitted to the monetary board of the Central Bank of Sri Lanka and the company is waiting for the response,” the firm said in a stock exchange filing.

The central bank in a letter to the Securities and Exchange Commission, published on the stock exchange website noted that owning the critical financial condition and due to non-compliance to the Finance Business Act directions issued by CBSL, it had given notice of cancellation of the finance company license to Sinhaputhra.

However, “under the Finance Business Act the company has the right to submit its objections to the Monetary Board within the 30-day appeal period,” CBSL added.

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  or cancel the license.

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