Sri Lanka GoldQuest controversy takes new turn with Central Bank denial

Chandi Dharmaratne

Sept 19 (LBO) – The controversy over the sudden recall of police investigators probing the GoldQuest scheme took a new turn, with the authorities denying that the move would affect an ongoing anti-pyramiding drive. The withdrawal of the police investigators from the bank’s unit investigating pyramid schemes will not affect ongoing investigations, the Central Bank of Sri Lanka said in a statement Tuesday.

The three officers, who were seconded from the Criminal Investigation Department (CID) of the Sri Lankan police, were involved in investigating the GoldQuest scheme.

Sections of Sri Lanka’s media had earlier warned that unit’s activities may be hampered after the appointment of Nivard Cabraal to the post of central bank Governor, whose family company, Capital Reach, is allegedly funded by a firm connected to Goldquest.

Sri Lanka’s opposition called for a parliamentary inquiry over the issue, when Cabraal was appointed.

However, Cabraal has denied any wrong doing saying he was against pyramid schemes.

The Special Investigations Unit (SIU) in which the three officers were working, was established in 2005 to deal with unauthorized deposit soliciting institutions, pyramid and multi-level marke