The Central Bank hasn’t powers of the Police and it cannot prosecute fraudsters involved in various unregulated financial schemes, said Central Bank Governor Dr. Nandala Weearasinghe responding to queries as to how and what action has the Central Bank taken on a certain plantation company using the Central Bank logo in its advertising campaign to entice investors.
He said the investigation unit at the Centreal Bank will do its part and then its left to the custodians of the law to proceed with the law enforcement and prosecution.
The Governor acknowledged that the Central Bank is not a prosecuting body with powers and the resources probe crime. It is rather a collective effort that is needed to bring an end to investment scams.
However, he said the Central Bank will not leave room for fraudsters to lead people down the garden path and fleece their hard earned money.
Speaking on the legality of crypto currency in the country the governor said that the Central Bank does not regulate crypto currency.
“There needs to be a disclosure and identification mechanism which is a long process,” the governor said.
However, he said that the bank is working with the Government in having a framework to identify virtual asset service providers and track their operations in the country.
According to an official of the Financial Intelligence Unit of the Central Bank the bank is taking steps to amend laws related to anti-money laundering (AML) and combating the financing of terrorism (CFT) which s includes organizing awareness programs and issuing regulations for various sectors, such as the real estate sector and money or value transfer service providers.
“The FIU is actively involved in these efforts to strengthen the financial sector’s integrity and resilience,” she said.
The Central Bank said that it had received around 10 complaints from persons who didn’t reveal their names on pyramid schemes during the Anti-Pyramid National Wareness Week’ from July 14-18.
“We are grateful for the media, the police and other law enforcement agancies for supporting us dueing the campaign to educate people on the dangers of investing in unregulated schemes that offer unrealistic returns,” the governor said stressing the need for higher financial literacy which an effective way to prevent people fallng prey to fraudulent schmes.
However, it was noted thateduaction alone not suffiecnt to address the issue and that law enforcement is also crucial to curb the growth of such schemes in the country.
Issuing a public notice on January 20 this year the Central Bank stated that it had conducted investigations and determined that 21 companies including the following companies, have engaged in a scheme prohibited under Section 83 (C) of the Banking Act, No. 30 of 1988 as amended.
1. Tiens Lanka Health Care (Pvt) Ltd, 2. Best Life International (Pvt) Ltd, 3. Mark–Wo International (Pvt) Ltd, 4. VML International (Pvt) Ltd, 5. …………………………………. 1, 6. Fast3Cycle International (Pvt) Ltd, 7. Sport Chain app, Sport Chain zs society Sri Lanka, 8. OnmaxDT, 9. MTFE App, MTFE SL Group, MTFE Success Lanka, MTFE DSCC Group, 10. Fastwin (Pvt) Ltd, 11. Fruugo Oline App/ Fruugo Oline (Pvt) Ltd, 12. Ride to Three Freedom (Pvt) Ltd, 13. Qnet, 14. Era Miracle (Pvt) Ltd. and Genesis Business School, 15. Ledger Block, 16. Isimaga International (Pvt) Ltd, 17. Beecoin App and Sunbird Foundation, 18. Windex Trading, 19. The Enrich Life (Pvt) Ltd, 20. Smart Win Entrepreneur (Pvt) Ltd, and 21. Net Fore International (Pvt) Ltd./ Netrrix.
Elaborating further on fraudulent schemes during the monetary policy review media briefing last week the Governor said various plantation companies take deposits from people promising higher returns under the pretext of investing the money.
“Before investing one must ask the company how it would pay a very high return and sustain it,” the Governor said.
The Monetary Policy Board decided to maintain the Overnight Policy Rate at the current level of 7.75% after considering domestic and global developments. The Board is of the view that the current monetary policy stance will help steer inflation towards the target of 5% in the period ahead while supporting growth.
Inflation is projected to turn positivethis quarter and steadily increase towards the target of 5% thereafter.
The economy recorded a 4.8% growth in Q1-2025 and leading economic indicators suggest the growth momentum will continue in the near term. However the growth in the first quarter this year falls short of the 5% growth in 2024.
