Investment Scams in Sri Lanka
Fraudulent investment schemes exploiting Sri Lanka's post-crisis desire for dollar-denominated returns and passive income.
Part of: Investment Scams
Last reviewed: 1 June 2026
Sri Lanka's economic turbulence has sharpened appetite for investments that offer protection against currency risk and inflation. Fraudsters have responded with schemes promising dollar-denominated returns, gold-backed savings, and real-estate pre-sales at discounted prices, collecting deposits that are never invested.
Pyramid and Ponzi structures are particularly prevalent, some operating through church networks, regional business clubs, or community savings groups, where social trust reduces scepticism.
How this scam works on Sri Lanka
Schemes are promoted at community gatherings and on Facebook groups with testimonials from early investors who received genuine early returns funded by new participants. As the scheme grows, returns are paid from fresh deposits rather than real investments.
Fake real-estate investment platforms advertise apartments in Colombo or Kandy at below-market prices for early investors. Deposits are collected and the developer later claims the project has been suspended, with no refunds.
Multi-level structures invite participants to recruit friends and family, rewarding referrals with bonuses. The scheme collapses when recruitment slows, with recent joiners losing the most.
Common red flags
- Returns guaranteed at rates well above Sri Lanka Treasury Bill yields
- Investment scheme introduced through a personal contact with a compelling testimonial
- Company not registered with the SEC of Sri Lanka or Central Bank
- Recruitment bonus offered for bringing in new investors
- Investment is in a form — gold, property, crypto — where valuations are difficult to verify independently
- Inability to provide audited financial statements on request
How to protect yourself
- Check the SEC Sri Lanka register at sec.gov.lk before investing in any scheme
- Verify that companies offering interest-bearing products hold a Central Bank licence
- Do not invest based on community or family pressure — make independent assessments
- Ask for audited financial statements and a prospectus before committing funds
- If a scheme relies on recruiting others, it is structurally a pyramid — avoid it
- Seek regulated licensed financial advisors for investment guidance
How to report it
- File a complaint with the SEC of Sri Lanka at sec.gov.lk
- Report to the Central Bank of Sri Lanka at cbsl.gov.lk for unlicensed deposit-taking
- Inform Sri Lanka Police at your local station or the Financial Crimes Investigation Division (FCID)
Frequently asked questions
How do I check if an investment company is SEC-registered in Sri Lanka?
Visit sec.gov.lk and use the Market Participants section to search licensed entities by name. If a company is not listed, it is not authorised to offer collective investment schemes or securities to the public in Sri Lanka.