Illegal Plantation Investment Schemes Flourish Despite Central Bank Crackdown Warnings
Despite repeated warnings from the Central Bank of Sri Lanka (CBSL), plantation-based investment schemes promising extraordinary returns continue to attract investors, raising fresh concerns over the effectiveness of regulatory enforcement and the growing sophistication of unauthorized deposit-taking operations.
The latest warning came on Tuesday when Central Bank Governor Dr. Nandalal Weerasinghe cautioned the public against investing in informal plantation and forestry projects that promise monthly returns and large capital gains at the end of cultivation periods. He stressed that companies collecting money from the public under such arrangements without the required licence are engaging in illegal deposit-taking under Sri Lankan banking laws.
“If they come asking for money from the public, saying, ‘Invest in this, we will pay a monthly sum and a large return at the end,’ then there is a problem,” the Governor said, urging investors to immediately seek refunds if they had already invested. He further advised that if companies fail to return the funds, affected investors should file complaints with the Central Bank to facilitate investigations and possible legal action.
The renewed warning follows a series of developments involving Kasagala Green Plantation (Private) Limited, a company that has remained at the centre of growing regulatory scrutiny.
On June 8, 2026, during a televised interview on Independent Television Network (ITN), Kasagala Director Malwattage Ranjith Nandana Pieris claimed that the company was regulated by the Central Bank and submitted compliance reports every six months. However, only four days later, on June 12, the Central Bank issued a public statement categorically rejecting those claims, describing them as misleading and confirming that it exercises no regulatory authority over the company. The Bank simultaneously announced the commencement of an investigation.
However, more than a month after the probe began, the company continues its commercial activities across the country while maintaining investor confidence through aggressive expansion and promotional campaigns.
Industry observers say the continued growth of such schemes demonstrates how difficult it has become for regulators to curb unauthorized investment operations that present themselves as legitimate agricultural businesses rather than financial institutions.
Unlike traditional investment companies, plantation schemes frequently market themselves as opportunities to participate in crop cultivation through forward crop agreements. Investors are promised returns linked to agricultural production rather than interest on deposits, creating a legal distinction that companies argue separates them from licensed financial institutions.
However, Central Bank officials maintain that the substance of the transaction not its labeldetermines whether it constitutes deposit-taking. When members of the public are invited to contribute money in return for guaranteed periodic payments or predetermined profits, the arrangement may fall within the scope of banking regulations regardless of how it is marketed.
The Central Bank’s latest appeal signals a broader effort to protect investors before more funds are channelled into schemes that could ultimately leave thousands facing significant financial losses. Whether the latest warnings will slow the rapid expansion of such plantation investment ventures remains an open question as investigations continue.
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