Connect with us

News

Pyramid schemes galore in rural areas where financial literacy is low– Police spokesman

Published

on

By Rathindra Kuruwita

Those operating pyramid schemes often target particular geographical locations where the financial literacy of the people is low, police spokesman, SSP Nihal Thalduwa says.He said that the CID had recently busted a pyramid scheme called Sports Chain, through which peolpe had been cheated out of Rs 15 billion, and arrested eight people.

“This scheme was carried out in Anuradhapura, Polonnaruwa and Kurunegala, and then it spread to other areas. We are now investigating several other schemes that have started from Hambantota and they, too, have spread across the country. They start in peripheral areas, and once established, they spread to other parts of the country,” the Police Spokesman said.

SSP Thalduwa added that the schemers had also customised their operations to cater to various target groups.

“The same product is packaged differently for youth and the middle-aged. The schemers have become very shrewd,” he said.

The police spokesman went on to say that the Central Bank and law enforcement authorities have been educating the people about pyramid schemes.However, these are multiplying as internet penetration and the use of smart devices have increased in the past few years, the police spokesman said.

He added that pyramid schemes are nothing new in Sri Lanka. However, in the past, their scale was comparatively small.

“Before the internet, those involved in pyramid schemes had to work harder to find new dupes. They probably had to canvass personally. Now they can use social media and gather people who are gullible,” he said.

According to SSP Thalduwa, some pyramid schemes involve cryptocurrencies. Most people do not understand what cryptocurrencies are, and there are so many of these digital currencies, he said.

“As the name suggests, the number of people at the top of the pyramid is small, and they probably end up making money. But the number of people increases as we go to the bottom, and these people always end up losing money. This also ends up affecting the economy because people become paranoid. For an economy to function, there should be an element of trust. Once this goes, things get bad really fast,” he said.

SSP Thalduwa said that there are a few internationally accepted platforms to buy and sell cryptocurrency. Often, those who manage pyramid schemes based on cryptocurrencies build trust among those who have invested by initially investing in these internationally accepted platforms.

“After a month or so, when some trust is established, these schemers migrate the investors to bogus platforms. Then they convince the investors that they are making about 100,000 rupees a day by trading cryptocurrencies. Recently, we arrested eight people, involved in a scheme called “SPORTS CHAIN.” This is how the Sports Chain schemers operated as well. There are many schemes,” he said.

SSP Thalduwa said the Banking Act bans pyramid schemes, and everyone involved in these schemes is guilty. The Central Bank can investigate these schemes, and if they identify such a scheme, the CBSL can direct the police to take action.

“When we get a complaint from people about suspected pyramid schemes, we ask the Central Bank to look into it and determine if this indeed is a pyramid scheme,” he said.

The police spokesman said that often those who run the pyramid schemes do it from outside the country, and the victims’ money has been taken to other countries.

“Then recovering the money becomes complicated. The government has to spend a lot of time and money on the recovery process,” he said.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

CEBEU warns of operational disruptions amid uncertainty over CEB restructuring

Published

on

The Ceylon Electricity Board Engineers’ Union (CEBEU) yesterday warned that uncertainty surrounding the ongoing restructuring of the Ceylon Electricity Board (CEB) had forced many employees to refrain from performing their regular duties, raising concerns about potential disruptions to electricity sector operations.

The engineers’ union said the current situation had arisen due to what it described as either deliberate actions or extreme negligence in implementing the restructuring process, which has created significant confusion among staff who previously served under the CEB.

According to the union, although the state power utility has been formally restructured and new companies established, a large majority of former CEB employees have yet to receive official appointment letters, confirming their positions in the newly formed entities.

“The reality is that the institution, previously known as the Ceylon Electricity Board, no longer exists in its earlier form, yet most employees, who served under it, have not been issued proper appointment letters, or related documentation, assigning them to the newly established companies,” the CEBEU said.

The union said that while some workers had been issued “assignation letters”, those documents merely indicate the institution to which an employee has been attached and do not clearly define employment conditions, responsibilities, authority, or reporting structures.

“As a result, employees currently lack the necessary legal framework confirming their employment status, their duties, the authority under which they operate, and who they are accountable to within the new institutions,” the CEBEU said.

The engineers’ union emphasised that the current crisis was not created by employees but was the direct result of, what it called, shortsighted and questionable actions taken by those responsible for implementing the reforms.

It also expressed concern that the relevant Minister, appointed through the National List, had failed to hold meaningful discussions with employees, despite having previously advocated strongly for workers’ rights.

The union said trade union action had been launched only after months of unsuccessful attempts to resolve the issues through verbal requests and written communication with the authorities.

“Despite repeated appeals made over several months, there has been no satisfactory response. Decisions appear to have been taken under the assumption that a government with a strong mandate can proceed without proper consultation,” the union said.

However, the CEBEU stressed that employees engaged in essential operations—including power generation, transmission, and distribution—continue to work in order to ensure electricity supply to the public.

“These staff members are continuing their duties under considerable risk to prevent major disruptions to the electricity supply,” the union noted.

Nevertheless, the union warned that the prevailing uncertainty could affect certain operational activities, and restoration work following breakdowns may take longer than usual.

The CEBEU appealed to the public to understand the situation and expressed regret for any inconvenience that may arise.

“We request the public to understand the situation and cooperate with us during this difficult period. We sincerely regret any inconvenience that may be caused,” the union added.

By Ifham Nizam

Continue Reading

News

Remittances up compared to last year before outbreak of war, but the economic picture is not rosy

Published

on

Sri Lanka Bureau of Foreign Employment (SLBFE) yesterday said that foreign remittances, during January and February this year, had been 32% higher than the corresponding period in the previous year.

According to a press release issued by the SLBFE, Sri Lanka received Rs 1,480.1 mn during January and February this year, whereas in 2025 the country received Rs1,121 mn during the corresponding period. During the first two months of this year, 47,819 Sri Lankans had left the country for employment abroad.

However, Prof. Priyanga Dunusinghe has warned that Sri Lanka could face a catastrophic situation due to a rapid and sharp drop in revenue caused by the escalating Gulf war. Fighting erupted on February 28 following a joint US-Israel attacks on Iran.

Appearing on Derana ‘Big Focus’ on Monday, the Professor in Economics in the Department of Economics, and Head – Department of Information Technology, University of Colombo, Dunusinghe said that that the drop in remittances from the Middle East, as well as exports, should be examined against the backdrop of runaway oil prices.

Continue Reading

News

The Netherlands alleges Russian Embassy interfering in World Press Photo Exhibition

Published

on

The Netherlands Embassy in Colombo has accused the Russian Embassy of trying to limit freedom of expression and right to know in Sri Lanka. The Embassy yesterday issued the following statement: “The Embassy of the Kingdom of the Netherlands’ attention has been drawn to the attempts by the Russian Embassy in Colombo to deny the people of Sri Lanka’s right to information and freedom of expression by demanding photos related to “Russia’s war of aggression” on Ukraine be removed from the World Press Photo exhibition, currently on display in Sri Lanka.

The 2025 edition of the World Press Photo Exhibition was officially opened by Dr Kaushalya Ariyaratne, Deputy Minister of Mass Media, and Wiebe de Boer, Ambassador of the Kingdom of the Netherlands on February 27, 2026, at One Galle Face. The same exhibition will be held in Kandy from 13 to 17 March 2026 at Sahas Uyana.

The Ambassador of the Russian Federation to Sri Lanka visited the exhibition during the weekend of March 7 and 8 and demanded the photographs, related to “Russia’s war of aggression on Ukraine,” be removed from the exhibition, and threatened to stage a protest if the organisers failed to do so.

The exhibition is jointly organised by the Netherlands Embassy, along with the Sri Lanka Press Institute, and the World Press Photo Foundation in the Netherlands.

Continuing the same demand, the Russian Embassy has now approached the Sri Lankan Ministry of Foreign Affairs to remove the said photos from the exhibition in Kandy. The same exhibition is currently underway in the USA and Germany and is showing all around the world in dozens of countries with freedom of expression.

The photos, including the photos that the Russian Embassy in Colombo wanted to hide from the Sri Lankan citizens, are also available online on the World Press Photo website for free for anyone to access them.

The Embassy of the Kingdom of the Netherlands deplores the attempts by any party to compromise people’s right to know and right to freedom of expression. It also amounts to a violation of the host country’s sovereignty if an Embassy attempts to decide what and which content its citizens should see and not. While we, as the Embassy of the Kingdom of the Netherlands, assure the Sri Lankan public that as our commitment to protect press freedom and respect for editorial integrity, we will continue the exhibition in Kandy with its full content without censoring any photos of the exhibition.

The exhibition is open to the public, free of charge, from 10.30am on Friday, March 13, till March 17, at Sahas Uyana in Kandy.”

Continue Reading

Trending