The discourse surrounding pyramid schemes in Sri Lanka has reached a critical juncture,
prompting the Central Bank of Sri Lanka (CBSL) to issue daily public warnings against various financial frauds, including agricultural pyramid scams. Through its official registry of prohibited pyramid entities, the CBSL has now formally declared 24 companies illegal.
Tracing the origins of these illicit networks inevitably leads to one prominent figure: Vijay Eswaran, an individual who has faced Interpol Red Notices issued by multiple jurisdictions, including India.
The rapid proliferation of these large-scale financial operations locally stems from a systemic failure to initiate prompt legal action at their inception. A critical question remains: despite active international warrants, whose influence prevented Sri Lanka from issuing a Red Notice against him when his initial schemes were exposed?
Serious allegations persist that, particularly during past United National Party (UNP) administrations, Eswaran received direct support and sanctuary from high-ranking police officials. It is an undeniable reality that such individuals continue to exploit legal loopholes and operate largely due to the backing of internal accomplices.
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Extensive investigations by Indian intelligence agencies into Eswaran’s corporate network have yielded crucial findings. Several of his entities, operating under monikers such as GoldQuest and QNet, were registered at identical addresses. Probes confirmed these entities functioned as 'virtual companies' - or shell corporations - with no physical footprint, existing ostensibly for the purpose of money laundering.
The mechanism by which the architect of this CBSL-banned network maneuvers investments within the local capital market warrants rigorous regulatory scrutiny. Through offshore shell companies like the Malaysia-registered "Fast Gain International Limited," the network has successfully acquired a 71.6% majority stake in 'Asia Capital PLC,' a company listed on the Colombo Stock Exchange (CSE).
How offshore entities linked to an individual under CBSL prohibition acquired a controlling stake in a publicly traded local company is a matter of urgent public interest. What exact role does Mr. Raju Radha, Managing Director of Asia Capital PLC, play in managing this capital? Authorities must comprehensively investigate whether he is operating as Eswaran’s local proxy. Furthermore, this scenario raises pressing questions as to why the Securities and Exchange Commission (SEC) is not enforcing strict regulatory provisions to mandate the disclosure of Ultimate Beneficial Owners (UBOs) in such high-stakes investments.
However, the current administration has demonstrated the political will to dismantle these syndicates, which, having flourished under past regimes, now pose a direct threat to the national economy.
The incumbent Inspector General of Police (IGP), a veteran officer with a proven track record of extraditing fugitive criminals shielded by Red Notices, has taken a firm stance. Under his strict directives against financial crimes, operations are already underway to dismantle these networks and bring the perpetrators to justice.
A special joint task force, spearheaded by the government, the CBSL’s Financial Intelligence Unit (FIU), and the IGP, has been mobilized. Accordingly, decisive legal action is expected imminently against all fraudulent institutions, their internal enablers, and corporate heads, regardless of their societal or corporate standing.
# Niromi Subramaniyam
