The Central Bank of Sri Lanka has warned the public to be cautious of plantation investment schemes that promise unusually high returns, saying such offers may be fraudulent, Newswire reported.
In a public awareness notice, the CBSL said plantation scams often rely on promises that cannot be delivered and urged investors to verify claims before making any payments. The central bank advised the public to be wary of schemes that guarantee very high returns within a short period, promise profits even if crops fail, or involve operators who are difficult to trace.
The CBSL also noted that registration with institutions such as the Registrar of Companies, or under the Pawnbrokers Ordinance, does not automatically grant a licence to accept deposits from the public.
Potential investors have been urged to question offers of unusually high returns, avoid making rushed payments under pressure, verify legal ownership of land involved in projects, and consult relevant authorities before investing.
“If the answer is yes to these warning signs, it may be a plantation scam,” the central bank cautioned, urging the public to “verify before you invest.”
The warning is the second high-profile CBSL consumer-protection notice this quarter. It follows a June 2 awareness alert against scam messages and phishing campaigns impersonating the central bank itself and lands in the same week that the government opened plantation lands and tea bungalows across seven districts to investors in the second phase of an AKD-launched programme — a juxtaposition that may explain the timing of CBSL’s awareness drive as legitimate plantation investment marketing intensifies.
