  
The Central Bank of Sri Lanka has issued an official notice cautioning the public that participation in pyramid schemes is a punishable offense under the country’s financial laws.
The monetary authority affirmed that individuals who engage in, promote, or facilitate prohibited pyramid structures are subject to legal consequences. Regulatory authorities emphasize that these schemes are inherently unsustainable, rely on deceptive recruitment practices rather than genuine commercial activity, and present severe financial risks to the public.
Key Developments
- Legal Consequences: The Central Bank of Sri Lanka reiterated that participating in pyramid schemes carries statutory penalties and legal liability.
- Consumer Protection: The public is urged to refrain from investing in or promoting financial arrangements that depend on recruiting new participants to generate returns.
Regulators continue to urge citizens to verify the credentials of financial entities and avoid unlicensed investment schemes to safeguard personal assets and maintain stability across the financial sector.