Sri Lankan authorities have arrested 1,093 foreign nationals in 2026 in connection with 27 cybercrime incidents, marking a sharp escalation in enforcement against online financial scams.

According to Police Spokesman ASP F.U. Wootler, by comparison, in 2025, police arrested 26 foreigners linked to two incidents, while in 2024, 573 foreigners were arrested in relation to 26 incidents.

The crackdown follows intensified raids, arrests, and public awareness campaigns aimed at curtailing scams conducted through social media platforms.

ASP Wootler said both locals and foreigners have fallen victim to these scams, prompting authorities to step up measures, including deporting suspects. 

He emphasized that the government is determined to halt financial crimes that exploit social media and online platforms.

The Police Spokesman also urged the public to exercise caution when renting houses, hotels, or business premises to foreign nationals. 

He advised landlords to verify the identities of foreign tenants by checking their business registrations and informing the nearest police station. (Newswire)

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The crackdown on scam compounds in Cambodia is leading some gangs to relocate to beach resorts and office buildings in Sri Lanka, in what may be the next phase of one of the world’s fastest-growing criminal industries.

A combination of visa-free travel, available building space, relatively strong telecommunications networks and a well-established informal money transfer system make the South Asian island nation an appealing destination for scammers, investigators say.

Authorities in Sri Lanka have set up a new cybercrimes unit and say they’ve arrested more than 1,000 people this year alone, most in western beach areas where tourists flock or in the capital, Colombo. “Police, along with the immigration department and the central bank, are working as a collective effort to see that this is being controlled,” said assistant police superintendent Fredrick Wootler. 

Still, observers say the country has a brief window to get its arms around what are fast-moving and increasingly sophisticated operators. “In Sri Lanka there are issues with implementing our laws, the fact that we don’t necessarily crack down on these companies – they simply use tourist visas,” Dilrukshi Handunnetti, director at the Centre for Investigative Reporting Sri Lanka, said.

When officers descended on one west coast property in April, they found more than 150 foreign nationals allegedly running a cyber-scam operation. Days later, police raided a multistory apartment building near Colombo and arrested another 120 foreign nationals.

As authorities step up the pressure, some operators appear to be shifting from large compounds to hotels, apartment buildings and office space that can be rented quickly and abandoned just as fast.

“This is happening in ways that are unfortunately even more difficult for us to keep our eyes on,” said Erin West, founder of anti-scam nonprofit Operation Shamrock. “I think we’ve created such skilled workers, whether they wanted to be or not, that they can operate really in any kind of environment.”

A report by a US congressional committee in July last year warned fraud networks appear to be relocating into environments marked by “regulatory stress” – jurisdictions with weak enforcement capabilities but strong digital infrastructure. 

Some of the suspected centres in Sri Lanka may be staffed by escapees from Southeast Asia’s scam centres who, with limited alternate work opportunities, are choosing to put their newfound skills to use, scam investigators said. 

Sri Lanka’s ascendancy reflects a broader pattern of scam operations that are appearing far beyond their traditional strongholds in places like the United Arab Emirates, Timor-Leste, Fiji and parts of Africa, raising concerns transnational gangs are becoming increasingly global.

China is one country paying attention. It was Chinese pressure in part that led Cambodia, a key ally, to clamp down earlier this year. The Chinese embassy in Sri Lanka released a statement in mid-March saying it was “closely following” reports of arrests of suspected scammers, including Chinese nationals. 

“Cases like these pose immense harm,” the statement said, citing the country’s developed telecommunications infrastructure, favourable geographic location and the “kindness and friendliness of its people” for an increase in scam operations.

There’s also a long history of Chinese workers living and working in Sri Lanka, in part due to Beijing’s Belt and Road infrastructure projects, potentially making it easier for scam operators to disappear into the diaspora.

“It’s not unusual to see entire apartment complexes and shopping complexes, and sometimes even neighbourhoods inhabited by Chinese,” said Sanjana Hattotuwa, an independent researcher who has spent more than two decades writing about Sri Lanka.

Sri Lankan authorities should look to other countries, including Vietnam and the Philippines, on how to prevent scam operators taking hold, versus Cambodia where they clearly did, according to Julia Dickson, an associate fellow at the Center for Strategic and International Studies.

“It comes down to, are officials keen to actually take action, or are they benefiting substantially like those in Cambodia?,” she said. Sri Lanka ranked 107 out of 182 countries and territories in Transparency International’s 2025 Corruption Perceptions Index, just above Algeria, Bosnia and Herzegovina and Laos.

A representative of Sri Lanka’s ministry of Foreign Affairs, Foreign Employment and Tourism didn’t immediately respond to a request for comment.

Sri Lanka currently allows visa-fee free entry for about half a dozen countries, including China, and has approved plans to increase that to 40 to boost tourism. Visitor arrivals increased again in May after slowing in March and April, likely due to the prolonged conflict in the Middle East. 

It’s too soon to know if human trafficking is occurring with the scam operations in Sri Lanka, according to Stephanie Baroud, a criminal intelligence analyst with the human trafficking and migrant smuggling unit at Interpol in Lyon. “It’s not yet something that is acknowledged” or reported, she said. But she added loose visa policies can be an enabling factor in trafficking.

Sri Lanka also lacks a legal framework equipped to tackle cyber-scam operations, while easy access to SIM cards and widespread connectivity have made it an attractive base for fraud networks, according to Hattotuwa. The country’s informal Undiyal money-transfer system may also provide a grey-market channel for moving scam proceeds, including cryptocurrency, beyond the reach of regulators.

Sri Lanka’s Financial Intelligence Unit is working with local law enforcement agencies in combating illicit fund flows, according to Central Bank Governor Nandalal Weerasinghe. He declined to comment on whether Sri Lanka is working with foreign authorities.

One immediate imperative is better sharing of information on what is happening in Sri Lanka. Cuts to US foreign aid have weakened civil society groups that often provide early warnings about emerging scam hubs.

“We have a lot less information about what’s going on on the ground,” said CSIS’s Dickson, making information sharing even more critical to tracking fraud networks. (Bloomberg)

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China and Sri Lanka have intensified joint law enforcement efforts to combat cross‑border online gambling and telecom fraud, crimes that authorities warn are increasingly spreading across Asia and beyond.

The Chinese Embassy in Colombo said both countries are working closely to dismantle scam centers and fraud networks that have relocated to Sri Lanka from other parts of Southeast Asia. The Embassy noted that such operations often intertwine with human trafficking and other serious crimes, posing grave risks to public security and social stability.

China’s position on cross‑border gambling remains firm: Chinese capital is prohibited from investing in overseas casinos, citizens are barred from operating them, and foreign casinos are forbidden from soliciting Chinese nationals. The Embassy stressed that gambling “almost invariably leads to financial ruin,” with tens of thousands of Chinese citizens suffering losses and harm. Recent amendments to China’s Criminal Law have criminalized cross‑border gambling activities.

The Embassy pointed out that Sri Lankan authorities have carried out multiple raids in recent months, dismantling gambling and fraud dens and arresting suspects from several countries. Several Chinese nationals involved in fraud‑related crimes have been handed over to Chinese authorities, producing what officials described as a strong deterrent effect.

The Chinese Embassy praised the efforts of Sri Lanka’s ministries of Foreign Affairs, Finance, and Public Security, particularly immigration and police officials, for their cooperation. It warned that without firm and immediate measures, the spread of illegal gambling and fraud could damage Sri Lanka’s international image, undermine social stability, and harm the safety and security of its people.

China has already conducted similar law enforcement cooperation with countries including Spain, the UAE, Myanmar, and Cambodia, leading to arrests and repatriations of overseas fraud suspects. It has also proposed the creation of an international alliance against telecom and online fraud to coordinate global efforts, it said. 

Going forward, China pledged to actively implement the Global Security Initiative and Global Civilization Initiative, while continuing to deepen law enforcement and security cooperation with Sri Lanka. 

The Embassy said these efforts aim to safeguard lives and property, protect financial security, and build a “clean, safe, and beautiful Sri Lanka,” while contributing to a new global framework for combating transnational crime. (Newswire)

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Sri Lanka is seeing a sharp rise in foreign-linked cyber scam operations, with authorities warning the country risks becoming a new base for international fraud networks displaced from Southeast Asia, according to AFP.

Police say more than 1,000 foreign nationals, mainly from China, Vietnam and India, have been arrested over alleged cybercrime activities since the beginning of 2026, compared to 430 arrests during the whole of 2024.

Authorities believe scam syndicates pushed out of countries such as Cambodia and Myanmar are shifting operations to Sri Lanka, citing the country’s relaxed visa regime and reliable internet infrastructure as key factors.

Police spokesman F.U. Wootler told AFP that recent raids had uncovered operations being run from locations ranging from luxury villas to office spaces.

In one operation this week, police carried out five raids in the Galle and Matara districts, arresting 192 Indian nationals and 29 Nepalis. Another 280 foreign suspects were arrested near Colombo last week, while 135 Chinese nationals were detained in March at a suspected scam centre.

Authorities are also probing whether foreign cybercrime networks may have links to the recent cyberattack involving Sri Lanka’s Treasury, which resulted in losses of around US$2.5 million.

Police have warned landlords against renting properties to suspected scam operators, noting that those facilitating such activities could face legal action. (Newswire)

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A group of 120 foreign nationals arrested in Rajagiriya has been ordered to be remanded until May 6 by Colombo Additional Magistrate R.D. Janaka.

The suspects were produced before the court yesterday following their arrest at an apartment complex on Welikada Road, Rajagiriya. 

The Police state that the group was engaged in illegal financial transactions and other unlawful activities.

They revealed that the suspects had rented several apartments in the building and were operating a fraudulent business from the premises. 

Computers and mobile phones found in their possession were seized during the raid.

The Police confirmed that the group includes nationals from China, Vietnam, Malaysia, Madagascar, the Philippines, Thailand, and Cambodia. (Newswire)

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A group of foreign nationals, including Chinese nationals, were detained following a raid on a leading hotel in Chilaw, with authorities now investigating a large number of computers found at the premises.

Police said the hotel had been leased to Chinese nationals about two months ago. According to reports, a significant number of computers were operating from the location, prompting suspicion among residents.

Area residents said the individuals had told them they were conducting computer-related training. However, locals grew suspicious due to the unusual number of foreign nationals staying at the hotel and informed the authorities.

Officials from the Criminal Investigation Department (CID) and the Police surrounded the hotel and carried out the operation. During the raid, several Chinese nationals reportedly broke glass windows and attempted to flee the premises.

Residents assisted authorities in apprehending those who escaped, while two individuals who sustained injuries during the incident were admitted to the Chilaw Hospital for treatment.

Locals said they initially believed only a few individuals were staying at the hotel, but during the operation, it was revealed that a large number, estimated between 100 and 150 people, were inside the premises.

The computers and related equipment found at the hotel have been taken for examination by CID officers, while further investigations are underway. (Newswire)

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