The Sri Lanka SEC warns public against online scams, urging investors to remain vigilant. Fraudsters are exploiting apps and false licensing claims to divert funds, but authorities assure the stock market remains largely safe and regulated.
Sri Lanka SEC alerts investors on online scams targeting stock market participants
Sri Lanka’s Securities and Exchange Commission (SEC) has issued an urgent advisory cautioning the public about ongoing online scams targeting potential investors in the local stock market. These fraudulent schemes, involving unlicensed operators, are attempting to divert funds under the guise of legitimate trading platforms.
The SEC has identified Blue Ocean Securities Limited and Gladius South Asia as primary perpetrators in these scams. Deputy Director General Tushara Jayaratne explained that Blue Ocean has been promoting an app called BOMate, which falsely claims to facilitate share trading. In reality, the app does not execute stock market transactions, and funds transferred through it are being redirected elsewhere.
“From this app, you can’t trade shares. But the money transaction goes through this app and the SEC system does not see these transactions. So the money is going somewhere else,” Jayaratne stated during a media briefing. In response, the SEC has filed formal complaints with the Criminal Investigation Department (CID) and the Financial Intelligence Unit (FIU) of the Central Bank to investigate the fraudulent activity.
Gladius South Asia has also been flagged for misleading investors by discouraging investments in the local market and promoting overseas opportunities. The company falsely claimed to possess SEC licensing, which was never granted. Jayaratne stressed that such misrepresentations are illegal and investors should exercise extreme caution before transferring funds or engaging with unknown platforms.
Despite these warnings, the SEC emphasized that Sri Lanka’s stock market remains largely legitimate, transparent, and regulated. “Our market is somewhat free and fair. From the perspective of investors, you also have a responsibility to be careful when investing in the market,” Jayaratne noted. The SEC encourages investors to verify licensing and regulatory status before making financial decisions.
Investor education is a key component of the SEC’s ongoing campaign to protect market participants. Authorities recommend using only verified trading platforms and consulting licensed financial advisors. Awareness campaigns and media briefings are part of a broader effort to reduce vulnerability to scams, ensuring that the public can safely participate in the equity markets.
The SEC also reminded investors that high returns promised by unverified sources often indicate fraudulent schemes. Legitimate trading platforms adhere to regulatory standards and provide secure transaction mechanisms, while fraudulent operators exploit technological loopholes to siphon funds.
Sri Lanka’s financial regulators continue to monitor suspicious activities, and they urge anyone approached with investment opportunities that seem unusually lucrative or unofficial to report immediately. By maintaining vigilance and verifying credentials, investors can protect themselves and contribute to a safer financial environment.
The warnings highlight the importance of due diligence, not only by regulators but also by investors themselves. As technology expands access to financial markets, the risk of online scams increases, making proactive measures essential for maintaining trust and integrity in the capital market.
By raising awareness and taking swift action against fraudulent operators, the SEC aims to preserve investor confidence and the overall credibility of Sri Lanka’s stock market. Authorities continue to stress that while scams exist, informed and cautious investors can navigate the market safely.