Media institutions who carry advertisements for financial institutions that promise unrealistic returns may be liable for damages if they later fail to deliver, a top legal expert warned.
Government advisor and member of the Financial Sector Reform Committee Dr.
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Wickrema Weerasuriya warned that print and electronic media could be sued under common law if they continue to carry advertisements for unregulated firms that solicit public deposits.
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rnDr. Weerasuriya was speaking at a seminar organised by the Sri Lanka Association of Investment Professionals.
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rnThough deposit taking is supposed to be regulated by the Central Bank, he said there was no clear-cut provision to prosecute such firms under the Monetary Law.rn
rnTwo institutions that promised high yields including Okanda Finance are already engaged in a court battle with the Central Bank.rn
rnDr. Weerasuriya was discussing whether to request media institutions to carry a disclaimer whenever an unregulated institutions places advertisemen