The Central Bank of Sri Lanka (CBSL) has urged the public to exercise extreme caution when investing in plantation-related schemes that promise unusually high returns or dividends.
Issuing a public advisory, the Central Bank warned that many such investment opportunities may be fraudulent and could expose investors to significant financial losses.
According to the CBSL, plantation investment scams often rely on unrealistic promises and claims that are unlikely to be fulfilled. As a result, the public is strongly advised to verify the credibility and legal status of any institution or company before making investments.
The Central Bank highlighted several warning signs that potential investors should carefully consider, including:
- Guarantees of exceptionally high returns within a short period.
- Promises of continuous profits even when crops fail or harvests are unsuccessful.
- Difficulty in obtaining clear information about the owners, directors, or management of the company.
The CBSL further emphasized that registration with the Registrar of Companies or registration under the Pawnbrokers Ordinance does not constitute legal authorization to accept deposits from the public.
Prospective investors are therefore encouraged to question how such schemes are able to generate unusually high returns and avoid making rushed investment decisions under pressure.
The Central Bank also advised the public to verify the legal ownership of lands associated with plantation projects and seek guidance from relevant government authorities before committing funds.
“If an investment scheme displays these warning signs, it may be a plantation investment scam. Therefore, always verify all relevant information before investing,” the Central Bank said in its statement.
The advisory comes amid growing concerns over fraudulent investment schemes targeting individuals seeking high returns in challenging economic conditions.
