Asia Plantation investment complaints raise questions over more than Rs. 3 billion collected from investors, promised returns and regulatory oversight.
COLOMBO — Serious allegations are being raised against Asia Plantation over more than Rs. 3 billion reportedly collected from nearly 3,000 investors, with complaints focusing on unpaid returns, bounced cheques, weak business performance and questions over why the company has not faced the same regulatory scrutiny as several other investment schemes recently targeted by the Central Bank of Sri Lanka.
The allegations, drawn from investor complaints, internal sources and information reviewed for this report, have not been established through a court ruling or formal regulatory finding.
Asia Plantation is described in the source material as a subsidiary of Asia International Consolidated and as being owned by Asanka Dissanayake.
The material further states that Dissanayake previously worked in insurance and later as an investment promoter in the plantation investment sector before establishing Asia Plantation.
The central public-interest question is whether the company’s investment model, financial position and use of investor funds have been adequately examined by the relevant authorities.
Investors Were Promised High Returns
According to the information provided, nearly 3,000 people, including retirees and Buddhist monks, invested more than Rs. 3 billion in Asia Plantation.
Investors were reportedly attracted by a two-year return structure that was described as offering a total return of 66 percent.
Under the model outlined in the source, an investor placing Rs. 10,000 was told that the original Rs. 10,000 would be returned at the end of the first year, followed by an additional Rs. 6,100 as the maturity amount in the second year.
Such promises would place particular importance on the company’s underlying cash flow, the profitability of its plantation and related businesses, and its ability to generate sufficient income to meet future investor obligations.
Complaints now suggest that those obligations are becoming increasingly difficult to meet.
Bounced Cheques and Delayed Returns Alleged
One of the cases cited involves the Chief Monk of Goyambokka, who is said to have invested Rs. 3 crore.
According to the source material, cheques issued in connection with that investment were subsequently dishonoured.
The company is also alleged to be asking investors for delays of between two and three weeks before making payments.
These claims have not been independently verified through bank records or court documents.
If accurate, however, repeated payment delays or bounced cheques would be significant because they could indicate a liquidity problem within the business.
The source further states that the company, which reportedly employs more than 300 people, was unable to pay the full amount of staff salaries last month.
That allegation also requires documentary confirmation.
Questions Over the Plantation Assets
Asia Plantation reportedly marketed large plantation properties as part of its investment proposition.
Concerns have now been raised over how much of that land is actually owned by the company and how much is held only under lease arrangements.
The information reviewed for this report claims that the company owns outright only around two acres of tea land in Ayagama and approximately five additional acres, including coconut land described as non-productive.
The source further alleges that many of the other plantation properties presented to investors are leased rather than owned.
That distinction is important.
A company may legitimately conduct agricultural operations on leased land. Leasing itself does not indicate wrongdoing.
The relevant question is whether investors were clearly informed of the ownership structure and whether the assets supporting the investment proposition were represented accurately.
Strawberry Project Said to Be Producing Little Income
Another area of concern involves strawberry-related projects in Ambewela and Boralanda.
The source states that more than Rs. 10 crore was spent on constructing tunnels and related infrastructure for those projects.
Despite that expenditure, the projects are alleged to be generating less than Rs. 100,000 a month in income.
At the same time, monthly costs for land, electricity, water and maintenance are said to range between Rs. 200,000 and Rs. 300,000.
If those figures are accurate, the operation would appear to be running at a continuing loss.
The Morning Telegraph has not independently verified the project accounts, revenue statements or expenditure records.
A proper financial review would therefore need to establish the actual capital invested, operating costs, production volumes and revenue generated.
Investors Question Luxury Vehicle Purchases
Investors have also alleged that the company’s owner purchased several high-value vehicles using investment funds.
The vehicles named in the source include a Ford Raptor, an Audi Q7 and a Honda CR-V.
No documentary evidence supplied for this report establishes the ownership structure of those vehicles, the source of funds used to purchase them or whether they were acquired for personal or corporate purposes.
These allegations should therefore not be treated as proven misuse of investor money.
They do, however, form part of the wider complaints now being raised over how funds were allocated.
Other Businesses Also Alleged to Be Underperforming
The source material states that investor funds were channelled into a series of other businesses that are now said to be performing poorly.
Among them are three pharmacies reportedly purchased in the Horana area.
Those businesses are alleged not to be generating a profit.
The company is also said to have acquired “AKSHARAYA TV”, which had been broadcast on PEOTV from the Malabe area and whose operations were managed by Pragath Darshika.
According to the source, substantial sums were subsequently spent maintaining the channel under the name “Asia TV”.
A spa established in Thailand is also alleged to be operating at a loss.
Separate fruit exports to Canada and Dubai are said to remain unpaid, including a 40-foot container shipment.
An additional tourism venture operating under the name “Dreams Tour” is also reported by internal sources to be loss-making.
Each of these claims requires examination against the company’s financial statements, contracts and transaction records.
Rs. 5.5m Loan Allegedly Issued Without Formal Documentation
Another allegation concerns approximately Rs. 5.5 million said to have been provided as a loan to an individual identified as Alanka.
The source claims that the money was advanced without proper legal documentation.
If correct, such a transaction would raise obvious governance and internal-control questions.
However, no loan agreement, board resolution or other supporting document has been provided in the source material.
The allegation therefore remains unproven.
Company Operates a Wide Branch Network
Asia Plantation is reported to operate branches in Matara, Akuressa, Ambalangoda, Elpitiya, Galle, Horana, Arapitiya, Kottawa, Mawanella, Neluwa and Panadura.
Plans are also said to exist for a new branch in Kandy.
The Matara branch reportedly has the largest concentration of investors.
The source alleges that, despite this branch network, the company is currently struggling to make promised payments and is seeking short extensions from investors.
A broad branch presence does not by itself establish either financial strength or weakness.
What matters is whether the underlying business can meet its contractual obligations.
Lawyer’s Name Appears in Internal Discussions
The source states that internal company discussions referred to obtaining the services of well-known lawyer Kalinga Indatissa in relation to legal work and documentation connected with the Central Bank.
There is no allegation in the source that Indatissa engaged in wrongdoing.
Retaining legal counsel for regulatory or compliance matters is entirely normal.
His name should therefore not be interpreted as evidence supporting any allegation against the company.
Internal Group Reportedly Compiling Evidence
The material further states that individuals within the company are compiling information for possible legal action.
That process is said to include branch manager details, contracts and other documents relating to the business.
If such records exist, they could become important in establishing whether investor representations matched the company’s actual financial position and business assets.
They could also help regulators distinguish between legitimate commercial losses and any potential breaches of law.
Why Has the Central Bank Not Acted?
The wider controversy arises against the background of recent Central Bank action against six entities described as illegal pyramid or plantation investment schemes.
The source questions why Asia Plantation, despite the scale of the complaints now being made against it, does not appear to have faced equivalent regulatory action.
That question requires caution.
The absence of publicly announced action does not establish that the Central Bank is ignoring the company, nor does it prove that Asia Plantation falls within the same legal category as entities already restricted.
Investigations may also take place without immediate public disclosure.
What can reasonably be asked is whether the Central Bank has received complaints concerning Asia Plantation and whether those complaints have been assessed under the relevant banking, deposit-taking, investment and anti-pyramid laws.
Regulators Should Clarify the Position
Given the sums involved and the number of investors reportedly affected, the matter warrants regulatory clarity.
Several questions require answers:
- Has the Central Bank received formal complaints about Asia Plantation?
- Has the company’s investment model been examined for compliance with applicable law?
- Are the promised returns supported by sustainable business income?
- What assets does the company own, and what assets are leased?
- Are investor funds being used for purposes disclosed in the relevant contracts?
- Has the company defaulted on payments, issued dishonoured cheques or requested repeated extensions?
- Are the company’s financial statements independently audited?
- Do any of its activities fall within laws governing prohibited pyramid schemes, deposit-taking or unauthorised investment products?
These are matters for regulators, auditors and, where necessary, the courts.
The allegations surrounding Asia Plantation are serious, but they remain allegations until tested against evidence.
At the same time, the scale of the reported investment pool means delay carries its own risk if the complaints prove well founded.
For nearly 3,000 investors who are said to have placed more than Rs. 3 billion into the company, regulatory silence will do little to resolve the uncertainty.
The Central Bank and other relevant authorities should therefore clarify whether an investigation is underway and, if appropriate, what steps are being taken to protect investors and establish the true financial position of the company.
