The Central Bank of Sri Lanka (CBSL) has warned the public to be vigilant of ‘pyramid schemes’, which it claimed are illegal under Sri Lankan law.
“Pyramid schemes operate on offers such as to make “easy money” or “online profit through trading goods/virtual currencies” to make you rich quickly without much effort,” the bank said, issuing a special notice.
The Central Bank further stated that it has identified several companies operating pyramid schemes and has notified the public through the media.
“However, it should be emphasized that the published list is not exhaustive and others may be operating pyramid schemes that are still being investigated by CBSL.
Some promoters of pyramid schemes give publicity to their schemes by advertising and sponsoring popular public sporting and religious events to attract new participants and have a tendency to use promotion codes/organizational codes for enrolment,” the bank pointed out.
The CBSL added that the public is advised to be alert and refrain from directly or indirectly being involved in pyramid schemes which could be punishable by law.
