Prohibited Pyramid Schemes in Sri Lanka

A pyramid scheme is a fraudulent financial arrangement in which earnings are primarily derived from recruiting new participants or from increasing the contributions made by the participants rather than from legitimate business activities. Under Section 83C of the Banking Act, No. 30 of 1988, any scheme exhibiting even one of these characteristics is considered illegal and subject to legal penalties including fines and imprisonment. This law not only penalizes those who directly initiate such schemes but also those who facilitate them in any form, including offering, promoting, advertising, financing, or directing these operations. If you encounter information about such schemes, you can report them to the nearest police station or contact the Central Bank of Sri Lanka via following,

Director, Financial Consumer Relations Department