Warnings have failed to deter senior executives and intellectuals from participating in illegal pyramid schemes, Central Bank Deputy Governor K.G.P. Sirikumara said.
“It is sad to note that ‘greed’ drives them to these illegal schemes and they end up losing their money,” Sirikumara told reporters.
He said that victims have little recourse to recover their funds through legal channels.
“We must also reiterate that neither the government nor the Central Bank would in any way come forward to pay back victims of these scams,” he said, adding that recovery would depend entirely on the original perpetrators.
Sirikumara noted that the Central Bank is actively monitoring certain illegal deposit-taking companies, some of which have been publicly blacklisted, and that legal action has been initiated against them.
In a related development, a bill to regulate non-banking lending institutions is expected to be introduced.
The proposed Microfinance and Credit Regulatory Authority Bill, published by President and Finance Minister Anura Kumara Dissanayake, includes penalties of up to Rs. 5 million, imprisonment for up to five years, or both, for non-compliance.
The legislation aims to strengthen oversight and protect consumers from fraudulent financial schemes, marking a step forward in Sri Lanka’s efforts to curb financial scams.
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