Central Bank of Sri Lanka Governor Nandalal Weerasinghe has warned the public against pouring money into informal plantation schemes that promise high returns, while cautioning media organisations against carrying advertisements that steer citizens toward illegal deposit-taking ventures.
Speaking after the latest monetary policy meeting on Thursday, July 23, Weerasinghe said non-bank supervision officials had stepped up action following a rise in plantation and forestry companies soliciting public funds under the guise of cultivation projects, EconomyNext reported. Promising a monthly payout and a large sum at the end of a project amounts to unauthorised deposit-taking, which is illegal under Sri Lankan law.
“If they come asking for money from the public, saying, ‘Invest in this, we will pay a monthly sum and a large return at the end,’ then there is a problem,” the Governor said. Responding to a query from Hiru News, he confirmed the Central Bank has no mechanism to recognise or approve plantation companies that accept deposits and pay returns.
Weerasinghe urged investors who have already committed funds to request their money back immediately to test whether a business is legitimate. Those unable to recover their money should lodge a formal complaint with the Central Bank so officials can investigate and pursue legal action against suspected pyramid schemes.
The Governor also flagged the scrolling banners and half-page advertisements — some aired during live sports telecasts — that promote such schemes, noting they rely on a phone number to draw callers into depositing money. Deputy Governor K. G. P. Sirikumara reminded media institutions that carrying ads for illegal deposit solicitors carries serious legal implications, saying they bear “a direct responsibility” to verify that advertisers hold a valid Central Bank licence before running solicitation ads.
The remarks build on the regulator’s June warnings over plantation investment scams and its notice that media houses face liability under the Finance Business Act for such advertisements.
