Siyambalapitiya warns public against pyramid schemes

Tuesday, 15 August 2023 00:00 - - {{hitsCtrl.values.hits}}

State Finance Minister Ranjith Siyambalapitiya

Describes such schemes as ‘social virus’
Calls on public to avoid engaging in such activities

State Finance Minister Ranjith Siyambalapitiya, on Sunday, warned against pyramid schemes, describing them as a ‘social virus’ and calling the public to avoid engaging in such activities.

“Pyramid operations are entirely a scheme; it is not legal in any way. As educated citizens of this society, you must refrain from engaging in such activities. This is a social virus in one way. We have enough problems and we don’t need any new problems. People who get involved in these schemes eventually fall into trouble, and we don’t need that at a time when they are already facing a crisis,” the State Minister told journalists following an event in Ruwanwella, Kegalle.

He highlighted the detrimental impact of pyramid schemes on society and emphasised the need for stringent legal measures to combat them.

Pyramid schemes, which are already prohibited under Section 83(C) of the Banking Act, No. 30 of 1988 in Sri Lanka, have become a cause for concern due to their potential to deceive and exploit unsuspecting individuals.

The State Minister stressed the importance of updating existing laws and imposing strict legal action against pyramid scheme operators for such fraudulent activities.

Siyambalapitiya also highlighted the significance of public awareness in curbing their spread. “The public must be informed about the deceptive nature of these schemes and the various disguises under which they are promoted, to dissuade them from participating,” he added.

He also elaborated on the collective responsibility of various entities, including the media, in warning the public against engaging in such illegal activities.

“The public should be warned that pyramid institutions are not a business, but a scheme,” he pointed out.