The Central Bank of Sri Lanka (CBSL) has announced that it has determined several companies and apps to be prohibited pyramid schemes under Section 83C of the Banking Act, No. 30 of 1988, as amended.

Following investigations, the CBSL confirmed that I.C.A.N Advertising (Pvt) Ltd and its affiliates, including icanonlineadvertising.com, bannercuts.com, bannercuts.lk, bannercuts.net, and bannercuts.org, have engaged in, conducted, and promoted a prohibited scheme.

The Central Bank further listed the following entities as prohibited schemes:

1. Tiens Lanka Health Care (Pvt) Ltd
2. Best Life International (Pvt) Ltd
3. Mark – Wo International (Pvt) Ltd
4. V M L International (Pvt) Ltd
5. Global Lifestyle Lanka (Pvt) Ltd
6. Fast3Cycle International (Pvt) Ltd
7. Sport Chain app, Sport Chain zs society Sri Lanka
8. OnmaxDT
9. MTFE App, MTFE SL Group, MTFE Success Lanka, MTFE DSCC Group
10. Fastwin (Pvt) Ltd
11. Fruugo Oline App / Fruugo Oline (Pvt) Ltd
12. Ride to Three Freedom (Pvt) Ltd
13. Qnet / Questnet
14. Era Miracle (Pvt) Ltd and Genesis Business School
15. Ledger Block
16. Isimaga International (Pvt) Ltd
17. Beecoin App and Sunbird Foundation
18. Windex Trading
19. The Enrich Life (Pvt) Ltd
20. Smart Win Entrepreneur (Pvt) Ltd
21. Net Fore International (Pvt) Ltd / Netrrix
22. Pro Care (Pvt) Ltd, Shade of Procare (Pvt) Ltd
23. SGO / sgomine.com
24. I.C.A.N Advertising (Pvt) Ltd and its affiliates (icanonlineadvertising.com / bannercuts.com / bannercuts.lk / bannercuts.net / bannercuts.org)

The CBSL urged the public to remain vigilant and avoid engaging with these entities, reiterating that pyramid schemes are prohibited under Sri Lankan law. (Newswire)

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Sixteen Chinese nationals have been arrested by the Cinnamon Gardens Police for allegedly engaging in illegal online pyramid‑style financial fraud while overstaying their visas in Sri Lanka.

According to the Lankadeepa Newspaper, the Cinnamon Gardens Police stated that, along with the suspects, the Police seized 23 laptops, 11 mobile phones, 7 routers, 9 voice converters, and 3,280 foreign cigarettes.

Per information received by the Cinnamon Gardens Police OIC, a group of Chinese nationals who had temporarily resided at addresses on Jawatta Road, Colombo 05, and Don Carolis Road were suspected of engaging in illegal activities. 

Acting on this tip, a team led by the Crimes Division OIC carried out the raid.

The Police say the 16 arrested Chinese men were in possession of duty‑free cigarettes imported into the country, and further searches of their residences uncovered laptops and other equipment.

Preliminary investigations revealed that these suspects had been connected with foreign countries while residing in Sri Lanka and were deceiving various individuals through pyramid scams. (Newswire)

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The Financial Crimes Investigation Division (FCID) has arrested seven suspects for operating and promoting an illegal pyramid scheme.

According to police, the arrests were made on October 23 following an investigation launched on information received by the Inspector General of Police.

The suspects, aged between 40 and 64, are residents of Ratmalana, Pannipitiya, Galnewa, Hokandara, Peradeniya, and Colombo 04.

Further investigations are underway by the FCID. (Newswire)

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Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe says the public falls victim to financial frauds, such as pyramid schemes, due to a lack of financial literacy.

Dr. Weerasinghe made the remark while addressing a public awareness programme about new technological services provided by banks and financial institutions registered with the Central Bank of Sri Lanka.

He further pointed out that the public falls victim to financial scams most often via advertisements on the internet. 

“Even though one may have money in hand, there is a higher chance of using that money in the wrong way and falling victim to scams. This is due to the lack of financial literacy and knowledge. Specifically, we see advertisements on the internet nowadays. They offer discounts, saying things like “you’ll get this”, even through email messages,” he said.

The Central Bank Governor revealed that the latest trend is promoting large-scale advertisements claiming that by investing in growing plants, the public can earn significant returns. 

“They say that if you plant trees, invest, or grow fruits, or even cultivate something like vegetables, you will earn big profits. Some use loopholes in the law and, under the guise of investment, fraudulently take your money and either place it in pyramid schemes or unauthorized deposits, leading to the risk of losing your money,” he further said.

Dr. Nandalal Weerasinghe urged the public receiving such offers to question how such large profits can be made from that particular farming venture.

He also revealed that programs are being implemented to improve the financial literacy of the people.

“The main reason for some of the negative aspects of digitalization is the lack of financial literacy and economic literacy. The public may resort to wrongdoing in their financial transactions and economic activities due to their lack of literacy. That is why, as we promote digitalization through the Central Bank, we are also implementing a special program on financial literacy,” the Central Bank Governor added. (Newswire)

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Gayan Wickramathilake, who managed the database of ‘Onmax DT’, a pyramid scheme in Sri Lanka, has been arrested in Dubai.

He was arrested by officials of the Criminal Investigations Department (CID) over the alleged fraudulent pyramid scheme.

According to the Police, Gayan Wickramathilake was brought back to Sri Lanka this morning (21 Feb).

‘OnmaxDT’ is among 09 entities that were banned by the Central Bank of Sri Lanka in August 2023 for engaging in pyramid schemes. 

The private firm was found to be allegedly involved in a pyramid financial fraud of US$ 100 million in Sri Lanka.

In November 2023, five Directors of ‘OnmaxDT’ were also arrested for the alleged fraudulent pyramid scheme. (Newswire)

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The Central Bank of Sri Lanka (CBSL) has issued a notice to the public warning of Prohibited Pyramid Schemes being operated in the country. 

Based on investigations, the Central Bank has determined 21 companies that have engaged in pyramid schemes.

According to a Central Bank statement, the companies have engaged in a scheme prohibited under Section 83 (C) of the Banking Act, No. 30 of 1988 as amended. 

Per the CBSL, the following are the 21 companies that have engaged in pyramid schemes;

1. Tiens Lanka Health Care (Pvt) Ltd 
2. Best Life International (Pvt) Ltd 
3. Mark – Wo International (Pvt) Ltd 
4. V M L International (Pvt) Ltd 
5. ————————— 
6. Fast3Cycle International (Pvt) Ltd 
7. Sport Chain app, Sport Chain zs society Sri Lanka 
8. OnmaxDT 
9. MTFE App, MTFE SL Group, MTFE Success Lanka, MTFE DSCC Group 
10. Fastwin (Pvt) Ltd 
11. Fruugo Oline App/ Fruugo Oline (Pvt) Ltd 
12. Ride to Three Freedom (Pvt) Ltd 
13. Qnet 
14. Era Miracle (Pvt) Ltd. And Genesis Business School 
15. Ledger Block 
16. Isimaga International (Pvt) Ltd 
17. Beecoin App and Sunbird Foundation 
18. Windex Trading 
19. The Enrich Life (Pvt) Ltd 
20. Smart Win Entrepreneur (Pvt) Ltd 
21. Net Fore International (Pvt) Ltd./ Netrrix 

The CBSL said disclosure of the name of a company which has been determined under Section 83(C) of the Banking Act is withheld due to a court order issued pertaining to such company.  (Newswire)

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A Sri Lankan who had defrauded around Rs. 1.8 billion through a pyramid scheme has been arrested by officials of the Criminal Investigations Department. 

Police Spokesman Nihal Thalduwa said that the man had fled Sri Lanka a year ago. 

He said, however, the 52-year-old suspect was arrested upon his return to Sri Lanka from Malaysia, at the Katunayake Airport.

DIG Thalduwa said the suspect’s wife, who had arrived at the airport to receive him, has also been arrested. (Newswire)

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The Central Bank of Sri Lanka (CBSL) has added one more entity to the list of entities/ applications prohibited for their involvement in pyramid schemes.

Issuing a notice, the Central Bank said that Windex Trading has been added to the list of nine (09) banned entities. 

The CBSL further warned that participating in pyramid schemes was a punishable offence in Sri Lanka. 

The entities announced today are in addition to the nine entities that were banned in August last year. (Newswire)

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A court order has been issued preventing the sale of assets belonging to a Director of a private firm, OnmaxDT, which was found to be allegedly involved in a pyramid financial fraud of US$ 100 million in Sri Lanka.

OnmaxDT is among 09 entities that were banned by the Central Bank of Sri Lanka in August this year for engaging in pyramid schemes.

According to Lankadeepa, Colombo Chief Magistrate Prasanna Alwis has issued an order preventing the transfer or sale of 20 properties worth over Rs. 620 million belonging to Sampath Sandaruwan, a Director of OnmaxDT. 

The court order has been issued to four land registrars in charge of the Matara, Kalutara, Hambantota, and Kadawatha areas. 

The Criminal Investigations Department (CID) had requested the court order after investigations had ascertained that the properties had been obtained using the pyramid scheme. 

The CID revealed that a luxury hotel and several luxury houses were among the 20 properties belonging to Sampath Sandaruwan adding that a luxury hotel and six houses were in Matara, two lands each in Hambantota and Kadawatha, and 10 lands in Kalutara. 

The court was also informed that Sampath Sandaruwa had attempted to transfer the ownership of the properties to his wife and relatives on the same day to conceal his involvement in the Pyramid scheme. 

The CID further stated that several complaints have been received with regard to the Pyramid Scheme conducted by OnmaxDT, adding that investigations have been launched into ten of the complaints.

It has been found that over Rs. 50 million each has been defrauded from two complainants by the fraudsters, the CID added. (NewsWire)

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The Central Bank of Sri Lanka (CBSL) has warned the public to be vigilant of ‘pyramid schemes’, which it claimed are illegal under Sri Lankan law. 

“Pyramid schemes operate on offers such as to make “easy money” or “online profit through trading goods/virtual currencies” to make you rich quickly without much effort,” the bank said, issuing a special notice. 

The Central Bank further stated that it has identified several companies operating pyramid schemes and has notified the public through the media. 

“However, it should be emphasized that the published list is not exhaustive and others may be operating pyramid schemes that are still being investigated by CBSL. 

Some promoters of pyramid schemes give publicity to their schemes by advertising and sponsoring popular public sporting and religious events to attract new participants and have a tendency to use promotion codes/organizational codes for enrolment,” the bank pointed out.

The CBSL added that the public is advised to be alert and refrain from directly or indirectly being involved in pyramid schemes which could be punishable by law. (NewsWire)

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The Central Bank of Sri Lanka (CBSL) has issued a public notice naming 8 entities that have conducted prohibited schemes. 

The CBSL has warned that participating in a pyramid scheme is a punishable offence. 

The CBSL notice further stated that based on complaints received by the bank, investigations were conducted in accordance with Section 83C of the Banking Act No. 30 of 1988, to ascertain whether the following institutions’ conduct and/or have conducted schemes prohibited in terms of Section 83C of the Banking Act. 

Accordingly, the Central Bank of Sri Lanka has determined that the entities listed below conduct and/or have conducted prohibited schemes in contravention of the provisions of Section 83C of the said Act. 

1. Tiens Lanka Health Care (Pvt) Ltd. 
2. Best Life International (Pvt) Ltd. 
3. Global Lifestyle Lanka (Pvt) Ltd. 
4. Mark-Wo International (Pvt) Ltd. 
5. V M L International (Pvt) Ltd. 
6. Fast 3Cycle International (Pvt) Ltd (F3C) 
7. Sport Chain App, Sports Chain ZS Society Sri Lanka 
8. OnmaxDT 

The CBSL further stated that any person who directly or indirectly initiates, offers, promotes, advertises, conducts, nances, manages or directs a scheme in contravention of the provisions of Section 83C of the Banking Act, No. 30 of 1988 shall be guilty of a punishable offence. 

The punishments for such offence include imprisonment for a period not exceeding three years or a fine not exceeding one million rupees or both imprisonment and fine. Where the offence is committed willfully or knowingly, or with the knowledge that the act will cause damage or harm to any other person, he/she is liable to rigorous imprisonment for a term not less than three years and not more than five years and to a fine of rupees two million or twice the aggregate amount in Sri Lanka currency revealed or divulged to have been received from the participants in the Scheme, whichever is higher. 

Accordingly, the public is informed to refrain from such activities which may be punishable by law. 

Further, the Central Bank of Sri Lanka denies the claim of certain elements of the society that it has reached some agreements with the institutions listed above which have been determined as conducting/having conducted pyramid schemes. 

Accordingly, the Central Bank of Sri Lanka has requested the Attorney General to consider instituting criminal proceedings in terms of the provisions of Section 83C of the Banking Act against the entities.

Earlier in May, the CBSL reported that it has received nearly 30 complaints in the last four months with regard to the prohibited pyramid scheme scams.

At the time, the CBSL stated the Criminal Investigation Department and the Sri Lanka Police will conduct formal investigations and strictly enforce the law in this regard. (NewsWire)

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