Don’t Invest in Schemes Promising High Returns in a Short Time! These Are Pyramid Schemes That Will Eventually Collapse – Special Statement from Deputy Minister Chathuranga Abeysinghe I Sri Lanka Latest News.

People should exercise extreme caution regarding investment schemes that claim to offer unusually high returns within a short period, exceeding the returns available from fixed deposits, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe has said in a social media post.

He pointed out that investing in a cultivation project or business generally takes around a year to generate returns. Therefore, people should be suspicious of institutions that promise to provide high returns immediately after money is invested.

The Deputy Minister emphasized that the money generated by such institutions is often not based on genuine assets. Instead, in a “pyramid” scheme, returns are paid to existing members using money contributed by newly recruited members. He warned that such networks will eventually collapse.

He further noted that if an institution could borrow money from banks, invest it, and retain high profits for itself, there would be no reason for such an institution to offer unusually high returns to the public.

Explaining the typical investment returns and profitability of different sectors, the Deputy Minister stated that Treasury bills generally provide returns of around 7%-8%, fixed deposits around 8%, savings accounts around 6%, unit trusts around 10%-12%, and the stock market around 12%-18%.

He also stated that annual profits in the general manufacturing and agricultural sectors are typically between 5% and 15%, while the services sector generally records profits between 10% and 20%.

He stressed that people should continuously investigate how businesses promising unusually high returns beyond these levels are generating their money.

Central Bank Issues a Statement!

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