The promise sounds attractive, but invest in a plantation project today and receive high returns within a short period. But according to the Central Bank, some of these offers may be designed to separate investors from their money rather than generate genuine profits.
In a public awareness notice, the Central Bank cautioned that plantation-related investment scams continue to target individuals by offering returns that are unrealistic, guaranteed, or unsupported by legitimate business activity.
The warning comes as authorities urge the public to conduct proper checks before committing funds to any plantation investment scheme.
What investors should watch for
According to the Central Bank, several warning signs commonly appear in fraudulent plantation investment schemes.
These include promises of unusually high returns within a short period, guarantees of profits regardless of crop performance, and operators who are difficult to identify or trace.
The Central Bank noted that genuine agricultural investments carry business risks, including weather conditions, disease outbreaks, market fluctuations, and operational challenges.
Schemes that claim investors cannot lose money should therefore be approached with caution.
Registration does not mean approval
The Central Bank also highlighted a common misconception among investors.
It stated that registration with institutions such as the Registrar of Companies or under the Pawnbrokers Ordinance does not automatically grant permission to accept deposits from the public.
As a result, investors should not assume that a company is authorized simply because it is registered under another regulatory framework.
Verify before you invest
Authorities have advised potential investors to independently verify claims made by promoters before making any payments.
This includes confirming ownership of land linked to the project, checking whether the operation is legally authorized, and consulting relevant authorities where necessary.
The Central Bank also warned against making investment decisions under pressure or responding to demands for immediate payment.
“If the answer is yes to these warning signs, it may be a plantation scam,” Mrs. Chanoori Jayasinghe, Central Bank’s Director of Non-Banking Financial Institutions (NBFIs), said, urging the public to “verify before you invest.”
Protecting savings from fraud
The warning serves as a reminder that attractive returns often come with equally high risks.
As investment scams become increasingly sophisticated, authorities are encouraging the public to carry out proper due diligence and seek independent verification before committing their savings to plantation-related projects or any other high-return investment opportunity.
Central Bank of Sri Lanka (CBSL) Online Scam
Last modified: June 11, 2026
