LBO Home IndoChina | About Us | To Advertise | Contact Us rss LBO Mobil rss rss rss rss rss
Australia won 2015 Cricket World Cup with a 7 wicket victory over New Zealand | Facebook to focus on three themes in 2015: Zuckerberg | Sri Lanka’s President Sirisena calls for a new thinking on Asian growth strategy | Sri Lanka to ease entry barriers for FDI: Ravi Karunanayake | Sri Lanka new rulers to get Chinese support | Sri Lanka sells $100mn of 5 year development bonds; rejects all bids at 2 and 3 years | Fitch affirms HSBC Sri Lanka branch at 'AAA(lka)'; outlook stable | Sri Lanka Freedom Party yet to decide a disciplinary action who participated pro-MR rally | Sri Lanka's President appoints a new law commission | Sri Lanka’s NDB-DFCC merger awaiting new regime’s go ahead | Ultra small computer by Intel; first look in Sri Lanka | Sri Lanka's micro-finance sector to access CRIB through a new regulation | Sri Lanka to get Chinese funded hospital for kidney patients; China to support SL on alleged human rights issues | Sri Lanka Siyapatha Finance PLC rated 'A(lka)' with a stable outlook : Rating agency | Sri Lanka’s AMW Capital Leasing and Finance upgraded to 'BBB+(lka)' : Fitch Ratings                                          
Mon, 30 March 2015 02:19:23
Sri Lanka to bring tighter laws against deposit scams
24 Sep, 2008 14:08:09
Sept 24, 2008 (LBO) - Sri Lanka will bring in tighter laws to nab fraudsters who run fraudulent deposit scams, a government minister said, after the collapse of the latest Ponzi-style high yield scheme.
Minister Ranjith Siyambalapitiya was responding to a question from parliamentarian Wimal Weerawansa.

A person calling himself Sakvithi Ranasinghe had collected hundreds of millions of rupees promising extraordinarily high returns and fled the country leaving more than 4,000 people penniless.

The man, whose real name was believed to be Chandrakumar Ranasinghe, had run a company called Sakvithi Lanka Constructions.

Officials from Sri Lanka's central bank had visited his office on September 09 to question him but he has fled the country.

Officials say investigations are underway on six other persons who are collecting money through investment scams.

Under the banking law of the country the central bank can only act against persons who are taking deposits, which is legally defined.

The bank has approved deposit taking institutions and has published advertisements warning people against unregistered institutions that take deposits.

However people sometimes take risks to get high returns. The central bank has said that the promise of a high yield itself should serve as a warning to depositors.

Some investment firms which were investigated by the Central Bank have even taken the regulator to court due to legal shortcomings.

Ponzi scams are named after an Italian immigrant in Chicago, Charles Ponzi, who took deposits from people saying he had a profitable business trading in postal reply coupons.

But in actual fact, the interest of earlier depositors were re-paid with money from new depositors as the underlying business was not that profitable.

Ponzi scams are a variant of a pyramid scheme.

Your Comment
Your Name/Handle
Your Email (Your email will not be displayed)
Your Email
Receivers Email
Your Comment