Central Bank blacklists 27 firms in crackdown on pyramid schemes

The Central Bank of Sri Lanka (CBSL) has formally declared 27 companies, mobile applications and related entities as prohibited pyramid schemes under Section 83(C) of the Banking Act No. 30 of 1988. The regulatory action follows an extensive investigation into illicit financial operations targeting Sri Lankan consumers.

In a public notice issued to alert citizens, the Central Bank detailed its findings that the entities in question were operating systematic schemes designed to defraud participants. Pyramid schemes typically promise unrealistic returns to investors while relying on recruitment of new participants rather than legitimate business activities to generate revenue.

The CBSL's enforcement action represents a significant effort to protect the public from fraudulent investment operators. The blacklist serves as an official warning to consumers to avoid dealing with the prohibited entities and their associated applications.

Members of the public who have already engaged with any of the banned companies or apps are advised to exercise caution and seek guidance from the Central Bank. The regulatory authority continues to monitor the financial sector for similar illicit operations and maintains strict oversight of non-banking financial services to safeguard consumer interests.