A lack of financial literacy is the main reason many Sri Lankans fall victim to pyramid schemes, according to Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL).
Speaking at a public awareness event on financial technologies offered by CBSL-registered institutions, Dr. Weerasinghe highlighted how fraudulent investment schemes exploit legal loopholes to deceive individuals.
“Even if you have money, without financial literacy, there’s a high risk of misusing it and falling for scams,” he stated.
He also warned about online scams and deceptive advertisements promising unrealistic returns, particularly in agriculture-related investments.
“We see large-scale promotions claiming massive profits from growing trees, fruits, or even ‘wallapatta’ (Gyrinops walla). People are losing money under the guise of investment, with funds ultimately funneled into pyramid schemes or unauthorized deposits,” he cautioned.
Dr. Weerasinghe emphasized the need for financial education, especially as Sri Lanka advances in digital financial services.
“One major drawback of digitalization is the lack of financial and economic literacy. Without a proper understanding of financial transactions, people become more vulnerable to fraud. Therefore, alongside promoting digitalization, the Central Bank is implementing a special financial literacy program,” he added.
