Growing concerns over transnational cybercrime have put Sri Lanka in the spotlight, as authorities report a sharp rise in scam operations allegedly relocated from Southeast Asia following intensified enforcement actions in the region.
Sri Lankan authorities have described the situation as an “alarming increase of cybercrimes,” with many foreign nationals reportedly entering the country on tourist visas before setting up illegal scam networks targeting victims worldwide. Since the start of the year, law enforcement agencies have conducted more than 12 raids and arrested nearly 700 foreign nationals linked to cyber fraud activities.
In the latest operation in Colombo, police detained 18 Chinese nationals and 1 individual from Laos. Investigators recovered 62 passports, laptops, mobile phones, storage devices, forged company registrations, fake legal certifications, and fabricated US treasury documents. Authorities also found documents falsely claiming a company valuation of $10 billion.
According to investigators, most of those arrested this year were Chinese citizens, while suspects from Vietnam, India, Indonesia, Laos, the Philippines, Malaysia, and Myanmar were also detained. All were reportedly operating on tourist visas.
Experts believe the shift is linked to crackdowns on large cyber scam compounds in Cambodia and Myanmar. These criminal networks, often involved in romance scams, cryptocurrency fraud, online gambling, money laundering, and investment scams, have become some of the world’s largest organised crime operations. The United States estimates that Americans lost $10 billion to Southeast Asian scam centres in 2024.
Sri Lanka has reportedly become an attractive destination due to easier visa access, newly introduced digital nomad visas, limited regulation around SIM cards and internet services, affordable office spaces, and relatively weak cybercrime enforcement mechanisms.
Cybercrime researcher Mark Bo noted, “After the crackdown really ramped up in Cambodia, I saw a lot more posts on Telegram channels of people saying they were moving to Sri Lanka.”
Authorities say many groups now operate in small teams of around 5 people, frequently changing locations across hotels, apartments, and office spaces to avoid detection. Investigations indicate that several operations are backed by significant financial resources, with some renting multiple floors of commercial buildings.
The Chinese embassy has acknowledged the involvement of Chinese nationals in fraud activities and stated its support for Sri Lankan authorities in tackling cybercrime networks.
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