Sinhaputhra Finance PLC, non-bank lender in Sri Lanka has been given time to raise capital, the Central Bank said.

“Further to the Press Notices published on September 8 and 9 on the regulatory actions taken against the above Company, the Monetary Board of the Central Bank of Sri Lanka (Monetary Board) wishes to inform the general public that in view of the proposed capital augmentation plan submitted by the Sinhaputhra Finance PLC (SINF) and in the interest of depositors, the Monetary Board decided to provide SINF with an opportunity to implement the proposed capital augmentation plan within the time frame stipulated.,” the regulator said in a public statement.

The central bank which regulates finance companies, had previously warned Sinhaputhra Finance that its license could be cancelled.

Sinhaputhra then said in stock exchange filing that a capital plan backed by an investor who has demonstrated financial credibility of meeting the regulatory capital requirement was presented to the to the Monetary Board.