Beware of Pyramid Schemes in Sri Lanka: Authorities Crack Down on Multi-Million Dollar Scams
A pyramid scheme is a fraudulent business model in which new members make a payment to join, and their earnings are primarily based on recruiting others to join, rather than selling products or services.
In Sri Lanka, pyramid schemes have been a problem in recent years, with several high-profile cases of scams involving thousands of people being duped out of their money. One notable example is the “Sri Lanka Money” pyramid scheme, which was shut down by authorities in 2019 after it was found to have defrauded around 35,000 people of over Rs. 1.2 billion (around $6 million).
To protect yourself from pyramid schemes in Sri Lanka, it’s important to be cautious of any business opportunity that promises high returns with little effort, requires you to recruit others to join, or involves a significant upfront investment. You can also check with the Central Bank of Sri Lanka or other regulatory authorities to see if a company is licensed and authorized to operate in the country.