The Central Bank of Sri Lanka (CBSL) has issued a stern public warning after identifying 25 companies and mobile applications found to be operating as illegal pyramid schemes across the country.
Official Action Under the Banking Act
Following a series of investigations carried out under Section 83(C) of the Banking Act, the CBSL has formally named the entities involved and alerted the public to the risks associated with engaging with these operations. The move signals a firm regulatory stance against fraudulent investment schemes that continue to target unsuspecting Sri Lankans.
What Are Pyramid Schemes?
Pyramid schemes are prohibited financial arrangements in which participants are recruited with promises of high returns, typically funded by the investments of newer members rather than any legitimate business activity. Such schemes are unsustainable by nature and inevitably collapse, leaving the majority of participants — often ordinary members of the public — with significant financial losses.
A Warning to the Public
The Central Bank has urged all members of the public to exercise extreme caution and to refrain from investing in or promoting any of the 25 identified companies and mobile applications.
Authorities have highlighted that both traditional companies and digital platforms, including mobile applications, are being used to run these prohibited schemes, reflecting the increasingly sophisticated methods employed by operators to attract victims.
What You Should Do
- Avoid making any financial transactions with the named companies or applications.
- Verify the legitimacy of any investment opportunity through the CBSL before committing funds.
- Report any suspicious financial schemes to the Central Bank or relevant law enforcement authorities.
- Warn family members and community contacts about the dangers of pyramid scheme participation.
The Central Bank's intervention serves as a timely reminder that Sri Lankans should remain vigilant against get-rich-quick schemes, particularly those operating through digital channels, which have grown in prevalence in recent years. Members of the public are encouraged to consult the official CBSL website or contact the bank directly for the full list of named entities and further guidance.
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naming them is good but who is going to arrest anyone? nothing will happen
finally CBSL did something useful. how many ppl already lost money though
my cousin lost 200k in one of these last year. too late for so many