18. Procedure for cancellation of licence

The Board shall, before cancelling the licence of a licensed microfinance company, serve a notice in writing on such licensed microfinance company requiring it to show cause within thirty days from the date of such notice being served as to why its licence should not be cancelled.

Where the licensed microfinance company fails to show cause within the specified period the Board may cancel the licence.

Where in compliance with the notice issued to it under subsection (1), such licensed microfinance company, shows cause within the specified period, the Board may, after considering the reasons provided and hearing the licensed microfinance company in support of its objections –

In the event of cancellation of a licence, the licensed microfinance company concerned shall be notified forthwith of such cancellation and the cancellation shall take effect from the date of such notification. The Board shall publish a notice of such cancellation at least in one each of Sinhala,

Where the licence of a licensed microfinance company is cancelled, the Board shall remove the name of such licensed microfinance company from the register maintained under section 8 and may issue such directions to such microfinance company as it considers necessary, including directions for winding up.

Where such microfinance company fails to comply with any directions issued under subsection (5) within the time specified by the Board, the Board may require the