Central Bank has drafted new laws to combat pyramid schemes that are mushrooming around the country.
Pyramid schemes use the same structure as multi-level marketing (MLM) where one entrant is required to bring in two or more recruits by the sale of a product or a voucher.
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rnBut Sri Lanka does not yet have specific provisions to separate genuine multilevel marketing schemes from risky Pyramids that can collapse, leaving thousands in the lurch.rn
rnCentral Banks legal director Ms. S Kadurugamuwa says anti-pyramiding laws have already been drafted with the help of experts from the International Monetary Fund.
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rnThe provisions were due to be brought to parliament with the new Banking Act.rn
rnBut authorities may have to bring it in earlier through an amendment to prevent large numbers from falling victim to proliferating pyramid type schemes.rn
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-LBR Newsdesk: LBOEmail@vanguardlanka.comrn