FINANCIAL CHRONICLE — The Central Bank of Sri Lanka has issued a warning to the public regarding informal plantation investment schemes that guarantee high returns. They have also advised media organizations against airing advertisements that could mislead the populace into engaging with illegal deposit-taking operations.
Governor Nandalal Weerasinghe stated that officials responsible for supervising non-bank activities have intensified their efforts in response to a surge in plantation and forestry companies unlawfully soliciting funds from the public under the pretense of agricultural projects.
Weerasinghe highlighted that offers of monthly payments and substantial returns upon project completion constitute unauthorized deposit-taking, which is prohibited under Sri Lankan legislation. “If they approach you for funds, claiming, ‘Invest in this; we’ll pay you monthly and give you a large return later,’ that raises a red flag,” he remarked.
The Governor encouraged individuals who have already invested in such schemes to promptly request the return of their funds to evaluate the legitimacy of these operations. Should these companies decline or fail to refund the investments, individuals are advised to file a formal complaint with the Central Bank, which can then investigate and take legal action against potential pyramid schemes.
Additionally, Central Bank officials expressed concern regarding media outlets that feature scrolling banners and large advertisements promoting unauthorized financial schemes, often juxtaposed with news warnings against them. Weerasinghe pointed out that while these ads may present themselves as general invitations to participate in cultivation projects rather than direct deposit solicitations, they typically include phone numbers meant to facilitate illegal fundraising once interested individuals call.
Deputy Governor K. G. P. Sirikumara reminded media organizations that publishing advertisements for illegal deposit solicitors carries significant legal ramifications under national banking regulations. “Media institutions have a direct responsibility to confirm… whether advertisers have the necessary approvals or valid licenses from the Central Bank for such activities,” Sirikumara stated.
The Central Bank has urged all television networks and print media to ethically verify that advertisers possess valid licenses from the Central Bank before accepting advertisements that solicit public deposits. (Colombo/Jul23/2026)
