ECONOMYNEXT – Sri Lanka’s central bank bank said its investigations have discovered 21 companies that were operating pyramid schemes.
Pyramid schemes also known as multi-level marketing and direct selling are recruitment programs where one member recruits a number of others in an expanding pyramid called a ‘downline’ chain letter-style.
A portion of the fee flows up towards the recruiters and their recruiters (upline) who are fewer in numbers.
Eventually an exponential amount of downliners lower in the pyramid lose their money, and small number of upliners who promoted the scheme recover their money.
When a pyramid scheme eventually collapses, up to to 99 percent of the downliners could lose their money.
Since they usually recruits friends and relatives, pyramid schemes also leads to shattered relationships, experts who study them have found.
Listen here how to identify basics of pyramid schemes
One of the companies, designated as a pyramid scheme has got a court order prohibiting their name from being published, the central bank said.
The list is reproduced below:
1. Tiens Lanka Health Care (Pvt) Ltd
2. Best Life International (Pvt) Ltd
3. Mark – Wo International (Pvt) Ltd
4. V M L International (Pvt) Ltd
5.
6. Fast3Cycle International (Pvt) Ltd
7. Sport Chain app, Sport Chain zs society Sri Lanka
8. OnmaxDT
9. MTFE App, MTFE SL Group, MTFE Success Lanka, MTFE DSCC Group
10. Fastwin (Pvt) Ltd
11. Fruugo Oline App/ Fruugo Oline (Pvt) Ltd
12. Ride to Three Freedom (Pvt) Ltd
13. Qnet
14. Era Miracle (Pvt) Ltd. And Genesis Business School
15. Ledger Block
16. Isimaga International (Pvt) Ltd
17. Beecoin App and Sunbird Foundation
18. Windex Trading
19. The Enrich Life (Pvt) Ltd
20. Smart Win Entrepreneur (Pvt) Ltd
21. Net Fore International (Pvt) Ltd./ Netrrix (Colombo/Jan20/2025)
