Prohibited pyramid schemes continue to operate despite ban

• The CBSL emphasizes that anyone involved in schemes contrary to the  provisions of Section 83C of the Banking Act may face imprisonment

By Darshana Sanjeewa Balasuriya  

Despite the Central Bank banning several entities engaged in prohibited pyramid schemes in the country, certain entities including Global Lifestyle Lanka (Pvt) Ltd and OnmaxDT continue to operate such schemes for over a decade.  

   Earlier, State Minister of Finance Ranjith Siyambalapitiya announced that as per the Penal Code, legal action would be taken against organizations and individuals participating in or supporting pyramid schemes.   
The Central Bank has banned Tiens Lanka Health Care (Pvt). Ltd, Best Life International (Pvt). Ltd., Global Lifestyle Lanka (Pvt). Ltd., Mark-Wo International (Pvt). Ltd,VML International (Pvt). Ltd, Fast 3Cycle Internatioal (Pvt). Ltd. (F3C), Sport Chain App, Sports Chain ZS Society Sri Lanka,OnmaxDT and MTFE App, MTFE SL Group, MTFE Success Lanka (Pvt). Ltd. and MTFE DSCC Group (Pvt). Ltd. for conducting prohibited schemes.   
The CBSL has informed that it has urged the Attorney General to consider initiating criminal proceedings against these entities under Section 83C of the Banking Act.   

Initial investigations by the Sri Lanka Central Bank into several companies, including Tiens Lanka Health Care, Best Life International, and Global Lifestyle Lanka, were initiated in October 2010 under the direction of then CBSL Governor Ajith Nivad Cabrall. The Bank Supervisions Department of the CBSL launched these investigations.   
On May 20, 2011, then Deputy Governor of the CBSL P.D.J Fernando wrote to Attorney General Mohan Peiris, stating that CBSL had concluded an investigation into the business activities of Global Lifestyle Lanka Pvt Ltd under the Banking Act, determining that the company engaged in a scheme prohibited under Section 83C.   
On March 20, the Attorney General’s Department responded, acknowledging the information received from the Central Bank regarding the prohibited scheme conducted by Lifestyle Lanka (Pvt) Ltd.   
The Financial Crimes Investigation Division commenced investigations against Global Lifestyle Lanka (Pvt) Ltd a few years ago based on complaints received in 2015 and a request from the Central Bank in 2017.   
The investigations revealed that the company called The V, affiliated with the Malaysian company QI, previously connected with the above companies operating in Sri Lanka, is linked to Global Lifestyle Lanka Pvt Ltd.   
Individuals involved in foreign companies such as GOLD QUEST, QUEST NET, QUEST INTERNATIONAL, which previously operated in Sri Lanka, reportedly ceased operations and resumed activities in Sri Lanka under the name of Global Lifestyle Lanka Private Company.   

Products such as solar systems, watches, and tea are among those reportedly sold by this company.