Central Bank Cracks Down on Pyramid Schemes

In a recent notice issued to the general public, the Central Bank of Sri Lanka (CBSL) has sternly warned against participation in pyramid schemes, declaring it a punishable offense. The CBSL has identified several entities believed to be involved in conducting or promoting such illicit schemes within Sri Lanka.

The list of organizations flagged by CBSL includes:

Beecoin App/Sunbird Foundation
Fast Win (Pvt) Ltd
Fruugo Oline App/ Fruugo Oline (Pvt) Ltd
Genesis Business School/Era Miracle (Pvt) Ltd
Isimaga International (Pvt) Ltd
Ledger Block
Qnet/Questnet
Ride to Three Freedom (Pvt) Ltd

This announcement comes as an extension of previous warnings issued by CBSL on August 24, 2023, regarding similar entities engaging in prohibited schemes.

According to the notice, any individual found to be directly or indirectly involved in initiating, promoting, advertising, conducting, financing, managing, or directing pyramid schemes will be deemed guilty of a punishable offense under Sri Lankan law.

Pyramid schemes, notorious for their exploitative nature and potential to cause financial harm to participants, have long been a concern for regulatory authorities worldwide. CBSL’s proactive stance reflects its commitment to safeguarding the interests of the public and maintaining the integrity of the financial system.

Citizens are urged to exercise caution and refrain from engaging with any entities suspected of involvement in pyramid schemes. Authorities emphasize the importance of staying informed and vigilant to protect oneself and others from falling victim to fraudulent schemes. (LankaXpress.com)