Central Bank Freezes Six Companies Over Dubious Plantation Investment Schemes

The Central Bank of Sri Lanka has frozen operations of six companies engaged in unregulated investment schemes centred on plantation projects, marking another regulatory crackdown on fraudulent financial ventures in the country.

The action follows complaints from investors who were promised substantial returns through investments in various plantation-based enterprises. These schemes typically target individuals seeking alternative investment opportunities outside conventional banking channels, exploiting growing financial vulnerability among Sri Lankan households.

Authorities have advised the public to exercise caution when approached with investment proposals offering above-market returns, particularly those operating without proper regulatory approval. The Central Bank emphasised that legitimate investment vehicles operating in Sri Lanka undergo strict licensing and compliance procedures.

Members of the public who believe they have been approached by such schemes or have already invested funds are urged to report details to the Central Bank's financial intelligence unit. Documentation of investment agreements and payment records should be preserved for investigation purposes.

The move reflects ongoing efforts by financial regulators to combat investment fraud schemes that have proliferated during Sri Lanka's recent economic challenges, when many citizens have sought alternative means to preserve savings.