Sri Lanka regulator moves against unlicensed plantation investment schemes

The Central Bank of Sri Lanka and the Securities and Exchange Commission have stepped up efforts to identify and shut down unauthorized plantation investment schemes operating across the country. These operations have collected significant funds from investors through promises of high returns, typically linked to agricultural ventures with limited transparency or regulatory oversight.

The schemes operate outside the formal financial regulatory framework, leaving investors vulnerable to fraud and capital loss. Authorities have warned the public that such investments lack proper licensing and investor protection mechanisms required under Sri Lankan financial services laws.

Regulators have urged financial institutions to scrutinize suspicious deposit activities linked to these schemes and have appealed to the public to report suspected fraudulent operations. Individuals approached with offers of guaranteed returns from plantation-based investments are advised to verify claims directly with relevant regulatory authorities before committing funds.

The regulatory actions come as part of broader efforts to strengthen consumer protection in the financial sector and prevent the proliferation of unregistered investment schemes that have historically caused substantial losses to retail investors across South Asia.