Central Bank Probes 18 Cases of Suspected Fraudulent Plantation Investments

January 29, Colombo (LNW): The Central Bank of Sri Lanka has launched investigations into 18 individuals and organisations suspected of illegally soliciting public funds through plantation and forestry-based investment schemes, Governor Dr Nandalal Weerasinghe announced yesterday (28).

Speaking at a press briefing to unveil the first Monetary Policy Statement of the year, Dr Weerasinghe stressed that collecting deposits from the public with promises of repayment falls under illegal activity as defined by the Financial Business Act.

He explained that inquiries into the flagged entities are currently ongoing, with legal proceedings expected once the investigations conclude. The Governor urged the public to exercise caution, noting that many people are easily drawn to plantation or crop-related investment offers.

“In recent months, several investment schemes connected to plantations and crop cultivation have emerged across different provinces. These are unregulated ventures. Neither the Central Bank nor any other authority supervises them,” he said.

Dr Weerasinghe warned that participation in such schemes carries significant personal risk. He specifically cautioned against promises of extraordinary monthly returns of 30–40 percent from agricultural projects, describing such claims as unrealistic and unattainable through legitimate farming.

He also highlighted that fraudulent schemes may present themselves in different ways, including offers of land ownership or deed transfers. Investors are urged to verify the credibility of any opportunity and ensure it is authorised by the Central Bank or another recognised regulatory body before committing funds.

The Governor concluded by reminding citizens that vigilance and careful verification remain the most effective safeguards against financial scams.

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