A lack of financial literacy is the primary reason many Sri Lankans fall victim to pyramid schemes, says the Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe.

Speaking at an event aimed at educating the public on new financial technologies offered by CBSL-registered institutions, Dr. Weerasinghe emphasized the dangers of fraudulent investment schemes that exploit legal loopholes.

“Even if you have money in hand, there is a high chance of misusing it and falling prey to fraud due to a lack of financial literacy,” he stated.

Highlighting the growing prevalence of scams, particularly online, he warned against deceptive advertisements promising unrealistic returns.

“We see advertisements on the internet, emails offering discounts, and now large-scale promotions claiming you can earn massive profits by investing in agriculture—whether it’s growing trees, fruits, or even ‘wallapatta’ [Gyrinops walla]. People are losing their money under the guise of investment, with funds ultimately funnelled into pyramid schemes or unauthorized deposits. So if they promise such large returns, the first thing you need to ask is how that crop provides such a huge benefit, “ the CBSL Governor cautioned.

Dr. Weerasinghe also underscored the need for financial education, particularly as Sri Lanka embraces digital financial services.

“One of the main drawbacks of digitalization is the lack of financial and economic literacy. When people do not fully understand financial transactions and economic activities, they become more vulnerable to wrongdoing. Therefore, while the Central Bank is promoting digitalization, we are also implementing a special program on financial literacy,” he added.