Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe, has cautioned the public against investing in unfamiliar schemes, highlighting that most victims of financial fraud, such as pyramid schemes, lack adequate financial literacy.
He made these comments during an awareness program aimed at informing the public about the new technological services offered by banks and financial institutions registered under the Central Bank.
“Even if people have money, there’s a significant risk they could misuse it and fall victim to fraud, largely due to insufficient financial awareness. We frequently observe online advertisements offering discounts or email promotions promising high returns. Recently, there have been extensive campaigns encouraging investments in agriculture or tree planting, promising substantial profits. Schemes that advertise growing fruits or plants like wallapatta with guaranteed huge returns often exploit legal loopholes to deceive people. Such schemes encourage individuals to invest their money into unauthorized deposits or pyramid schemes. Whenever such opportunities arise, people should first question how these excessively high returns are realistically achievable,” Dr. Weerasinghe explained.
The Central Bank Governor further emphasized that ongoing programs are in place to enhance the public’s financial literacy.
“One major drawback of digitalization is that a lack of financial and economic literacy can lead to financial misconduct. To address this, while we promote digital financial services through the Central Bank, we’re simultaneously implementing dedicated programs aimed at improving financial literacy,” he added.
