Thousands of distraught depositors have been flocking to a suburban police station in the past two days to lodge complaints against Sakvithi Ranasinghe.
Ranasinghe had posed as a popular English tutor and also ran investment firms.
Police spokesman Ranjith Gunasekera said several complaints had been received about the scam.
About 2,000 people had gathered at the Mirihana police in a southern suburb of Colombo, Monday, when a team from our sister news website Vimasuma.
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com visited the station.
Angry depositors were demanding police hand over a suspect they said they believed had been detained.
Police in Mirihana said they had received about 5,000 complaints about the scam.
Depositors and police said Ranasinghe, the suspect fraudster, had attracted deposits from the public by publishing ads in newspapers for many years.
He had offered returns as high a