Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe says the public falls victim to financial frauds, such as pyramid schemes, due to a lack of financial literacy.
Dr. Weerasinghe made the remark while addressing a public awareness programme about new technological services provided by banks and financial institutions registered with the Central Bank of Sri Lanka.
He further pointed out that the public falls victim to financial scams most often via advertisements on the internet.
“Even though one may have money in hand, there is a higher chance of using that money in the wrong way and falling victim to scams. This is due to the lack of financial literacy and knowledge. Specifically, we see advertisements on the internet nowadays. They offer discounts, saying things like “you’ll get this”, even through email messages,” he said.
The Central Bank Governor revealed that the latest trend is promoting large-scale advertisements claiming that by investing in growing plants, the public can earn significant returns.
“They say that if you plant trees, invest, or grow fruits, or even cultivate something like vegetables, you will earn big profits. Some use loopholes in the law and, under the guise of investment, fraudulently take your money and either place it in pyramid schemes or unauthorized deposits, leading to the risk of losing your money,” he further said.
Dr. Nandalal Weerasinghe urged the public receiving such offers to question how such large profits can be made from that particular farming venture.
He also revealed that programs are being implemented to improve the financial literacy of the people.
“The main reason for some of the negative aspects of digitalization is the lack of financial literacy and economic literacy. The public may resort to wrongdoing in their financial transactions and economic activities due to their lack of literacy. That is why, as we promote digitalization through the Central Bank, we are also implementing a special program on financial literacy,” the Central Bank Governor added. (Newswire)