Governor of the Central Bank of Sri Lanka (CBSL) – Dr. Nandalal Weerasinghe has stated that the majority of people in this country who fall prey to pyramid schemes, lack financial literacy.
Dr. Nandala made these comments while participating in a recent public awareness program on new technological services provided by banks and financial institutions registered with the CBSL.
“Even though people have money in their hands, there is a higher risk of that money being misused and falling prey to fraud. This is mainly due to a lack of financial literacy and knowledge. In particular, we see online advertisements offering discounts and sending promotional emails. The newest trend is advertising to collect funds while claiming to grow different crops. They say if you invest in cultivating trees, fruit or wallapatta (agarwood), you will get huge returns. Taking advantage of legal loopholes, such schemes will fraudulently take hold of your money and deposit it in pyramid schemes or unauthorized savings, leading to financial losses. So whenever you hear something like this, the first question should be—how is that even possible?”
Dr. Weerasinghe further noted that the CBSL is actively implementing programs aimed at improving public financial literacy.
“One of the main reasons for the negative aspects of digitalization taking place is the lack of financial and economic literacy. This leads to making wrong decisions. Therefore, the CBSL Is implementing a special programme on financial literacy while also promoting digitalization,” he said.
