Hi Karthik,
You can convert this current to voltage and use a voltage comparator
Set reference voltage of comparator 2V (it means 40uA source connect to ground through 50K resistor 40uA x 50K = 2V)
In this condition you can get one option below 40uA or above 40uA
You can also use TIA ( TransImpedance Amplifier) that is available from many manufacturer.
Look at Photodiode Amplifier for FTTH CATV networks too..You can arrange the Gain according to your requirement.
So do you want it to stay in its previous state until it reaches the trip level?
If so, then you could use a comparator, as smijesh suggested, with a 20uA hysteresis.
What is the source impedance and voltage capability of the current signal source?