Central Bank warns public against illegal plantation deposit schemes

The Central Bank does not have a mechanism to recognise or approve plantation companies that accept deposits from customers and pay returns, Governor of the Central Bank Dr. Nandalal Weerasinghe said at the Monetary Policy meeting today.

Responding to a query from Hiru News, he said the Central Bank does not approve such deposit-taking mechanisms.

“We consider these deposit-taking schemes to be illegal and we discourage depositors from investing in them. If they have already invested, we request them to seek the withdrawal of their funds. If they are unable to do so, they should lodge a complaint with the Police or the Central Bank.”

The Governor also said that some of these agriculture-based investment companies advertise heavily in the media, including during live sports telecasts. He noted that when prospective investors call the advertised telephone numbers, the conversations are centred on accepting deposits.

Asked whether these companies could operate legally with Central Bank approval, Dr. Weerasinghe said the best option would be to obtain registration similar to that of a finance company.

“Otherwise, deposit-taking is illegal in Sri Lanka.”

He also advised the public that if they believe there are profitable opportunities in the agriculture sector, they should engage in cultivation themselves rather than investing in unapproved deposit-taking schemes.