On 13 July 2020, Central Bank of Sri Lanka decided to cancel the license of the company due to insufficient capital and financial problems regarding repaying depositors' money on demand as well as before maturity.
ETI Finance is a core company of popular family controlled entity EAP Holdings.
[4] The company was regarded as a leading financial institution in Sri Lanka for decades and the reputation of the business started to make downfall soon after the death of E. A. P.
[8] In 2018, the CBSL warned of temporary regulatory actions against the company under the provisions of Finance Business Act no 42 of 2011 for failing to maintain adequate liquidity position and for failing to pay depositors money and CBSL vehemently took over the ETI Finance with immediate effect.
[12][13] On 13 July 2020, the Central Bank of Sri Lanka officially suspended the licenses of ETI Finance and its subsidiary company Swarnamahal Financial Services following the decision reached during a meeting held by the Monetary Board of CBSL on 10 July 2020.