A lack of financial literacy is the primary reason many Sri Lankans come down with pyramid schemes, states the Governor of the Central Bank of Sri Lanka (CBSL), Dr.
Nandalal Weerasinghe.Speaking at an event aimed at educating the public on new monetary innovations used by CBSL-registered organizations, Dr.
Weerasinghe highlighted the dangers of deceitful investment schemes that exploit legal loopholes.Even if you have cash in hand, there is a high opportunity of misusing it and falling victim to scams due to a lack of monetary literacy, he stated.Highlighting the growing frequency of scams, especially online, he cautioned against misleading advertisements promising unrealistic returns.We see advertisements on the web, e-mails providing discount rates, and now massive promos claiming you can make huge revenues by purchasing agriculturewhether its growing trees, fruits, and even wallapatta [Gyrinops walla] Individuals are losing their cash under the guise of investment, with funds eventually funnelled into pyramid plans or unauthorized deposits.
If they promise such big returns, the first thing you require to ask is how that crop offers such a substantial benefit, the CBSL Governor cautioned.Dr.
Weerasinghe likewise underscored the requirement for financial education, particularly as Sri Lanka accepts digital financial services.One of the primary disadvantages of digitalization is the lack of monetary and economic literacy.
When people do not completely comprehend financial deals and financial activities, they become more susceptible to wrongdoing.
While the Central Bank is promoting digitalization, we are also carrying out a special program on monetary literacy, he included.