Sinhaputhra Finance in talks with investors after Sri Lanka regulatory warning

ECONOMYNEXT – Sri Lanka’s Sinhaputhra Finance Plc, said it was in talks with an investors for new capital after the central bank, which regulates non-bank lenders, warned that it may cancel its finance company license.

“..[A] comprehensive capital plan backed by an investor who has demonstrated financial credibility of meeting the regulatory capital requirement was submitted to the monetary board of the central bank and the company is awaiting their 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 said it had given notice of cancellation of the finance company license to Sinhaputhra.

The company has then filed objections as provided by law, saying they were in talks with an investor.

“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,” the central bank said.

According to CSE data the stock has last traded at 8.20 rupees. (Colombo/Sept02/2019)

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