The Central Bank of Sri Lanka (CBSL) has intensified its battle against illegal financial schemes by officially blacklisting 25 companies and mobile applications found to be operating prohibited pyramid and deposit-taking networks in violation of the Banking Act No. 30 of 1988. The move comes amid growing concerns over a surge in fraudulent investment platforms targeting unsuspecting Sri Lankans with promises of extraordinary returns.
Under Section 83(C) of the Banking Act, the CBSL has legally designated these entities as prohibited financial businesses, warning that their operations are unlawful and that anyone promoting or participating in them could face serious criminal consequences.
Among the latest entities added to the prohibited list is Infinity Rover (Pvt) Ltd, joining several well-known digital investment and multi-level marketing platforms already under scrutiny. Other blacklisted entities include OnmaxDT, MTFE App and its variations, Fastwin (Pvt) Ltd, Ledger Block, Sport Chain App, SGO/sgomine.com, Qnet/Questnet, Global Lifestyle Lanka, I.C.A.N Advertising, and several other companies and mobile applications accused of operating illegal financial networks.
The CBSL’s latest enforcement drive also highlights an emerging trend in financial fraud. Governor Dr. Nandalal Weerasinghe has issued an urgent warning over a new generation of scams disguised as plantation, forestry and agricultural investment opportunities.
According to the Central Bank, these unlicensed operators are increasingly using newspaper advertisements, television promotions, social media campaigns and scrolling electronic banners to lure investors with promises of exceptionally high monthly returns from cultivation and plantation projects. However, regulators stress that these operations are, in reality, unregistered deposit-taking schemes operating outside Sri Lanka’s financial regulatory framework.
The CBSL has reiterated that only institutions registered as Licensed Finance Companies are legally permitted to accept public deposits. Any organisation soliciting funds for alternative agricultural or plantation investments without such authorisation is operating illegally.
In an unusually strong warning directed at the media industry, the Central Bank has reminded media organisations that they have a legal responsibility to verify whether advertisers promoting financial investment opportunities are registered with the CBSL before carrying such advertisements.
The regulator has also urged the public to recognise common warning signs associated with pyramid and fraudulent investment schemes. These include earnings primarily generated through recruiting new members rather than the sale of genuine products or services, guarantees of unrealistically high profits with little or no financial risk, and digital platforms that lack a verifiable physical presence in Sri Lanka or identifiable corporate management.
Authorities caution that participation in these schemes extends beyond merely investing. Recruiting new members, advertising the programmes, facilitating transactions or managing such operations are all criminal offences under Sri Lankan law.
Individuals found guilty of promoting or facilitating prohibited pyramid schemes face imprisonment ranging from three to five years, substantial statutory fines, or financial penalties amounting to twice the total funds collected from participants.
With sophisticated financial scams continuing to evolve, the CBSL is urging the public to verify the legitimacy of any investment opportunity before committing funds, warning that promises of quick and guaranteed wealth often conceal costly financial traps.
By Special Correspondent