ECONOMYNEXT – – Sri Lanka’s central bank named eight entities for conducting prohibited pyramid schemes in the country.
Sri Lanka has prohibited pyramid schemes which a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products.
As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.
The central bank in a statement reminded the public: “Participating in a pyramid scheme is a punishable offence.”
“Based on complaints received by the Central Bank of Sri Lanka, investigations were conducted…to ascertain whether the… institutions conduct and/or have conducted schemes prohibited,” the central bank said.
After the investigations, the Central Bank has determined that the following entities conduct and/or have conducted prohibited schemes in contravention of the provisions of the law:
Tiens Lanka Health Care (Pvt) Ltd, Best Life International (Pvt) Ltd, Global Lifestyle Lanka (Pvt) Ltd., Mark-Wo International (Pvt) Ltd., V M L International (Pvt) Ltd., Fast 3Cycle International (Pvt) Ltd (F3C), Sport Chain App, Sports Chain ZS Society Sri Lanka, and OnmaxDT.
“Any person who directly or indirectly initiates, offers, promotes, advertises, conducts, finances, manages or directs a scheme in contravention.. of the Banking Act…, shall be guilty of a punishable offence.”
“The punishments for such offence include imprisonment for a period not exceeding three years or a fine not exceeding one million rupees or both imprisonment and fine.”
“Accordingly, the public is informed to refrain from such activities which may be punishable by law. Further, the Central Bank of Sri Lanka denies the claim of certain elements of the society that it has reached some agreements with the institutions listed above which have been determined as conducting/having conducted pyramid schemes.” (Colombo/May 31/2023)