The Central Bank of Sri Lanka (CBSL) has issued a public notice declaring 21 companies and apps as prohibited pyramid schemes under Section 83 (C) of the Banking Act, No. 30 of 1988, as amended.

This move is part of the CBSL’s ongoing efforts to protect consumers and maintain financial stability by curbing fraudulent and unsustainable business practices.

The list of banned entities includes Pro Care (Pvt) Ltd. and Shade of Procare (Pvt) Ltd., which have been found to engage in activities that violate the Banking Act.

Additionally, the CBSL has identified and prohibited 19 other companies and apps, including Tiens Lanka Health Care (Pvt) Ltd., Best Life International (Pvt) Ltd., Mark-Wo International (Pvt) Ltd., VML International (Pvt) Ltd., Fast3Cycle International (Pvt) Ltd., and Sport Chain app (operated by Sport Chain zs society Sri Lanka).

Other prohibited entities are OnmaxDT, MTFE App (and its affiliated groups MTFE SL Group, MTFE Success Lanka, and MTFE DSCC Group), Fastwin (Pvt) Ltd., Fruugo Online App/Fruugo Online (Pvt) Ltd., Ride to Three Freedom (Pvt) Ltd., Qnet, Era Miracle (Pvt) Ltd. (and its affiliate Genesis Business School), Ledger Block, Isimaga International (Pvt) Ltd., Beecoin App (and Sunbird Foundation), Windex Trading, The Enrich Life (Pvt) Ltd., Smart Win Entrepreneur (Pvt) Ltd., and Net Fore International (Pvt) Ltd./Netrrix.

This latest action follows a series of regulatory measures taken by the CBSL in recent years to strengthen oversight of financial activities.

The Banking Act, under which these schemes have been prohibited, empowers the CBSL to investigate and take action against entities engaging in unauthorized financial activities, including pyramid schemes.

The CBSL has collaborated with other regulatory bodies, such as the Securities and Exchange Commission of Sri Lanka (SEC) and the Consumer Affairs Authority (CAA), to enhance enforcement and streamline investigations into fraudulent schemes.