CBSL probes 18 over illegal plantation investment schemes

By Mangala Pavithrani

Colombo, Jan. 29 (Daily Mirror) - The Central Bank of Sri Lanka (CBSL) is investigating 18 institutions and individuals allegedly involved in illegal deposit-taking from the public under the guise of forest and plantation-based investment schemes, Central Bank Governor Dr. Nandalal Weerasinghe said yesterday.

Speaking at a media briefing at the Central Bank to announce the first Monetary Policy Statement for this year, the Governor said that accepting funds from the public with a promise of repayment amounts to illegal deposit-taking under the Financial Business Act.

Dr. Weerasinghe said that investigations into the identified entities and individuals are currently ongoing, adding that legal action is expected to follow based on the findings.

Addressing the media, he warned the public to be cautious of such schemes, pointing out that many people are easily attracted to plantation and crop-related investment proposals. “In recent times, various investment schemes linked to plantation and crop cultivation have been promoted in several provinces. These types of investments are not regulated. The Central Bank does not regulate them, nor is there any other regulatory authority,” he said.

He said that investors who engage in such schemes do so at their own risk, as there is no regulatory oversight or protection. The Governor also cautioned against institutions that claim to offer monthly returns of 30 to 40 percent through agricultural or crop cultivation projects, describing such promises as unrealistic and impossible to achieve through genuine farming activities.

Dr. Weerasinghe further warned that financial fraud can take multiple forms, including schemes that claim to provide land deeds or ownership rights, and urged the public to remain vigilant to avoid falling victim to scams.

He highlighted the importance of verifying the legitimacy of investment opportunities and relying only on institutions regulated by the Central Bank or other recognized authorities before committing funds.