Speaking to Daily Mirror, Minister of Youth & Sports, Minister of Development Co-ordination and Monitoring, and State Minister of Digital Technology and Enterprise Development Namal Rajapaksa said The Central Bank of Sri Lanka and Sri Lanka Police must take action to regulate illegal pyramid schemes before it is too late.
“When there is a report that someone is misusing or misguiding the people about their investment portfolio, then the Central Bank and Sri Lanka Police must act. If they don't regulate now, once the society is being flooded with these, then the new regulations will not help anyone,” Minister Rajapaksa said.
Minister Rajapaksa opined that without taking legal action against such scammers, sometimes even the exact officials in those investigations had started investing in those schemes.“my personal opinion is yes we need changes in the law. But, the existing law is enough to prevent these schemes,” he said.
In an investigative piece titled ‘Unmasking Sri Lanka's Pyramid Parasites', the Daily Mirror last week revealed how illegal pyramid schemes are spreading through the country especially after the pandemic, targeting the youth.
A “Pyramid Scheme” is defined by the Central Bank as a scheme under which a person makes a payment to get the right to recruit others into the scheme for which he receives an income.the new recruits also make payments to get the right to further recruit others and in turn receive incomes for such recruitment. Such schemes are illegal in Sri Lanka under the Banking Act No.30 of 1988.
Earning money by conning the weak and selling them a dream of passive income through an illegal pyramid isn't entrepreneurship. When asked about the harm that such “get rich quick” pyramid schemes does for entrepreneurship among the young generation, Minister Rajapaksa said educational reforms and more awareness on fiscal management for the young generation is a must.
“Even though Sri Lanka has a really good education system, it only caters to certain segments. As a result, the knowledge of fiscal management of kids is much less than the rest of the world. They gain experience through mistakes and as a result, the cost has become very high. Many people invest in wrong people and wrong financial institutions.”
Sharing his plans and future programmes planned to promote entrepreneurship, he said; “we should also introduce new innovative investment opportunities as there is blockchain industry, cryptocurrency. As the Youth Affairs Ministry, we will be looking into this area by coordinating with the Central Bank and other relevant government institutions.” He claimed that as a part of next budget's plan, Finance Minister Basil Rajapaksa had already sent a note to relevant authorities, departments, and government politicians to do at least 40% mandatory investment in entrepreneurship development.
“Each Grama Sewaka Vasama will get Rs. 3 million each, out of which 40% will be the minimum investment for entrepreneurship development. At the same time, from my ministry, I am coordinating with 10 other state ministries to promote entrepreneurs in order to create opportunities and also create a market for them. At the moment, we are in discussion with some e-commerce platforms to come and assist us. We will also be talking to supermarket chains to see how they can bring these products into their networks,” he added.(PIYUMI FONSEKA)
Mizaru Monday, 27 September 2021 08:26 AM
Start wth the share market!
N SENA Monday, 27 September 2021 10:01 AM
THE BRAIN CHILD OF PYRAMID SCHEME IS NOW CB GOVERNOR
Lal Monday, 27 September 2021 10:46 AM
Hon. Minister we have to live with peaceful life. Please start with first with politicians. Otherwise we have beg for another 10 years v
Choon Mastan Monday, 27 September 2021 10:47 AM
Ha...Ha..Ha..Ha its a joke - hopefully you will become our next Finance Minister, PM or even President.
Prof. K.M. Veerasingham Monday, 27 September 2021 10:49 AM
First of all tell me, do you know how many "0" are in a Million? don't talk bullshit and waste our time and energy.
Damian Monday, 27 September 2021 10:50 AM
Then you'll have to arrest Cabral ?
Tussele Monday, 27 September 2021 10:50 AM
Is your Family conflict over or not. We know all the in
Damian Silva Monday, 27 September 2021 10:54 AM
Then tell your Uncle to sack Gabral and appoint you as the CB Governor.
Karister Kottawa Kumudu Monday, 27 September 2021 11:26 AM
Namal you are expert on sleeping with Sri Lankan Good looking girls in the villages, but you are not suitable to be a Minister as you don't have educational back-ground.
Jal Perera Monday, 27 September 2021 11:28 AM
Do you know what are you doing now. Get lost.
Gona Monday, 27 September 2021 12:17 PM
When Kothalawalaa ran Golden Key which was a kind of of pyramid scheme, nobody investigated it. When it collapsed, who grabbed the assets of that company? So you are the people behind all these schemes and trying to hoodwink the public that you are against and then wash your hands after something happens. Gamini S grabbed all assets of Ceylinco on behalf of babies. We haven't forgotten. Curse you.
Ice Monday, 27 September 2021 12:30 PM
You don't have the rights to talk about legality. let this topic be discussed by honest people...
Kabarakoya Monday, 27 September 2021 12:59 PM
Start the raid by visiting Fast 3 Cycle (f3c) They are deeply rooted with the help of media channels police and politicos
Ram Monday, 27 September 2021 01:12 PM
You are a lawyer Mr Minister. Why don't you suggest the necessary amendments to the law
Chris Monday, 27 September 2021 02:33 PM
Get lost men. Trying to sound important.
Ranamal Banda Monday, 27 September 2021 03:28 PM
You are best FIT for the next PREZ of SL!
Vernon Monday, 27 September 2021 05:21 PM
Who will act before it is too late, where most of the politicians on both sides play out public money by bribes, unacceptable deals etc. The opposition is shouting to come back, as they want the chance to rob. Govt MPs wants to recover the money spent in coming to parliament.
dickey bird Monday, 27 September 2021 09:45 PM
This guy takes the cake. All stock markets the worldover are gaming dens. just keep it going. regulate pyramid schemes. How can the police do it when recruitment to police are political hench men and not people qualified or have knowledge in these fields. Those graduate direct ASP, all political appointment.
Ranaweera Monday, 27 September 2021 10:31 PM
What about your uncle Nivard Cabraal? Is he not involved in these things?
Shanka Pathi Monday, 27 September 2021 11:16 PM
Namal, all I request from you is one thing very clear. Are you and your family really worked for the betterment of our country. You and your family only agenda is to make money for your family. God will punish you all.
W.Ahangama Tuesday, 28 September 2021 12:48 AM
What about the “Goldquest” pyramid scheme in the mid 2000’s and the Central Bank Investigations being stopped before they were concluded as reported by some newspaper companies in 2005,2006 and 2007.
M Fernando Tuesday, 28 September 2021 03:12 AM
Illegal Pyramids BAD Legal Pyramids GOOD Legal Pyramids are those where kickbacks are generously handed out
Ramases Tuesday, 28 September 2021 08:04 AM
N Sena, you hit the nail on the head. Namal knows it too and is taking precautions?
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