The Central Bank of Sri Lanka (CBSL) has asked the Attorney General to consider taking legal action against eight prohibited pyramid schemes operating in the country. Following complaints, investigations were conducted under Section 83C of the Banking Act No. 30 of 1988 to determine if the listed institutions were involved in prohibited schemes as defined by the same act.
Based on its findings, the Central Bank of Sri Lanka has confirmed that the following entities have engaged in prohibited schemes in violation of Section 83C of the Banking Act:
- Tiens Lanka Health Care (Pvt) Ltd.
- Best Life International (Pvt) Ltd.
- Global Lifestyle Lanka (Pvt) Ltd.
- Mark-Wo International (Pvt) Ltd.
- V M L International (Pvt) Ltd.
- Fast 3Cycle International (Pvt) Ltd. (F3C)
- Sport Chain App, Sports Chain ZS Society Sri Lanka
- OnmaxDT
The CBSL has also cautioned that participation in a pyramid scheme is a punishable offense. “Anyone who directly or indirectly initiates, offers, promotes, advertises, conducts, finances, manages, or directs a scheme in violation of the provisions of Section 83C of the Banking Act, No. 30 of 1988, shall be guilty of a punishable offense.”
The penalties for such offenses may include imprisonment for up to three years, a fine not exceeding one million rupees, or both imprisonment and a fine. In cases where the offense is committed willfully or knowingly, or with the awareness that it will cause harm to others, the liable individual may face rigorous imprisonment ranging from three to five years, along with a fine of two million rupees or double the total amount received from scheme participants, whichever is higher.
The public is advised to refrain from engaging in activities that may be subject to legal punishment, as stated by the bank.
Additionally, the Central Bank of Sri Lanka refutes the claims made by certain individuals in society regarding any agreements reached with the aforementioned institutions involved in pyramid schemes. Therefore, the CBSL has requested the Honorable Attorney General to consider initiating criminal proceedings based on the provisions outlined in Section 83C of the Banking Act.
