The Central Bank of Sri Lanka (CBSL) is investigating 18 institutions and individuals suspected of illegally collecting deposits from the public through forest and plantation-based investment schemes, Central Bank Governor Dr. Nandalal Weerasinghe said Thursday.
Speaking at a media briefing at the CBSL to announce the country’s first Monetary Policy Statement of the year, Dr. Nandalal Weerasinghe said accepting money from the public with a promise of repayment constitutes illegal deposit-taking under the Financial Business Act.
He said investigations into the identified entities and individuals are ongoing and that legal action is expected based on the outcome of those inquiries.
The CBSL governor warned the public to exercise caution, noting that many investors are drawn to plantation- and agriculture-related investment schemes. He said several such schemes have been promoted in recent months across multiple provinces.
“These types of investments are not regulated. The Central Bank does not regulate them, and there is no other regulatory authority overseeing them,” he said.
He said individuals who invest in such schemes do so at their own risk, as there is no regulatory protection. Dr. Nandalal Weerasinghe also cautioned against institutions promising monthly returns of 30 percent to 40 percent through agricultural or crop cultivation projects, calling such claims unrealistic and unattainable through legitimate farming activities.
He said financial fraud can take various forms, including schemes that claim to offer land deeds or ownership rights, and urged the public to remain vigilant to avoid being misled.
Dr. Nandalal Weerasinghe emphasized the need for investors to verify the legitimacy of investment opportunities and to place funds only with institutions regulated by the Central Bank or other recognized authorities. (NewsWire)