Look Out

Media institutions who carry advertisements for financial institutions that promise unrealistic returns may be liable for damages if they later fail to deliver, a top legal expert warned.
Government advisor and member of the Financial Sector Reform Committee Dr. Wickrema Weerasuriya warned that print and electronic media could be sued under common law if they continue to carry advertisements for unregulated firms that solicit public deposits.rn

rnDr. Weerasuriya was speaking at a seminar organised by the Sri Lanka Association of Investment Professionals.rn

rnThough deposit taking is supposed to be regulated by the Central Bank, he said there was no clear-cut provision to prosecute such firms under the Monetary Law.rn

rnTwo institutions that promised high yields including Okanda Finance are already engaged in a court battle with the Central Bank.rn

rnDr. Weerasuriya was discussing whether to request media institutions to carry a disclaimer whenever an unregulated institutions places advertisemen