ECONOMYNEXT – Sri Lankans should be extra vigilant on investments in crop cultivations with higher returns as many people had ended up in such unregulated investment to find out they are also similar to illegal pyramid schemes, Central Bank Governor Nandalal Weerasinghe said.
In recent years, Sri Lanka has witnessed a surge in unregulated investment schemes targeting agricultural lands, often luring investors with promises of land ownership and assured monthly incomes in signed agreements.
These ventures typically market themselves as opportunities to invest in commercial farming or eco-friendly projects, offering returns that appear attractive amidst the country’s economic challenges, analysts say.
However, many of these schemes operate without proper regulatory oversight, raising concerns about their legitimacy and the protection of investors’ rights.
“They (investment agents) claim that by cultivating various crops, they can give (higher) return,” he said,
“For example, they say that by growing ni-miris (scotch bonnet pepper), you can earn a monthly interest of 30% or 40%. That means you can earn more than 120% annually. Therefore, people should realize that if such a profit can be made from an investment, they could do it themselves.”
“There is no need to give your money to someone else to do it. However, we all know that this is practically impossible to achieve.”
Weerasinghe said the Central Bank has observed an increasing trend of the public being lured toward fraudulent investment schemes in plantations and agriculture sectors.
“The first thing to remember is that plantation investments are unregulated. If you lose your money, there is no regulatory authority to handle your complaint. This is an entirely unregulated sector,” Weerasinghe warned.
He said people are being promised of deeds for the cultivation they have invested after signing contracts, citing to protect individual investments.
Currently 18 individuals or organizations are being investigated related such investments which are considered as illegal deposits, he said. (Colombo/January 30/2026)