The Central Bank of Sri Lanka (CBSL) has raised serious concerns over the growing spread of unregulated agro-based investment schemes, warning the public to exercise extreme caution when investing in plantation and crop-related ventures that promise high returns.
Central Bank Governor Dr. Nandalal Weerasinghe, speaking at a media briefing held yesterday at the Central Bank to announce the first Monetary Policy Statement for this year, revealed that investigations are underway into 18 institutions and individuals suspected of illegally accepting public funds under the guise of forest and plantation investments.
He explained that any entity collecting money from the public with a promise of repayment falls under illegal deposit-taking as defined by the Financial Business Act. “These schemes operate outside the regulatory framework. The Central Bank does not supervise them, and there is no other authority providing oversight,” the Governor said.
Dr. Weerasinghe noted that such schemes have been aggressively promoted in several provinces, exploiting public interest in agriculture and plantation-based businesses. He cautioned that investors are exposed to significant risk, as there are no legal protections or guarantees for funds invested in these ventures.
Particular concern was expressed over claims of extraordinarily high monthly returns—ranging from 30 to 40 percent—allegedly generated through crop cultivation. The Governor stressed that such returns are unrealistic and cannot be achieved through legitimate agricultural activities.
He also warned that financial scams may take different forms, including offers linked to land ownership or the issuance of land deeds, urging the public to remain alert and avoid being misled by attractive promises.
Emphasising investor protection, Dr. Weerasinghe advised the public to verify the regulatory status of any institution before investing and to engage only with entities that are duly regulated by the Central Bank or other recognised authorities.
