Crackdown in South-east Asia pushes scam networks to Sri Lanka

Reality Check
By Editor_1
Prison guards escort detained Chinese nationals suspected of running cyberscam centres to a prison after their arrest in Colombo on May 9, 2026 -Ishara S Kodikara/AFP

By Amal Jayasinghe

COLOMBO – A surge in arrests of suspected foreign scammers in Sri Lanka has the authorities concerned that the island is fast becoming a hub for online crime, following sweeping crackdowns in hot spots Cambodia and Myanmar.

Officials say some scam networks forced out of countries in South-east Asia have simply shifted to new bases, increasingly moving operations to Sri Lanka, an attractive destination due to a relaxed visa regime and reliable, high-speed internet.

Since the start of 2026, police have arrested more than 1,000 foreigners, mainly from China, Vietnam and India, for their alleged involvement in cybercrime, Police Media Spokesman, Assistant Superintendent of Police Fredrick Wootler said, a jump from 430 for the entirety of 2024 and even fewer in 2025.

In April, Sri Lankan Customs officials intercepted nine Chinese nationals attempting to smuggle used mobile phones and laptops in the hundreds, raising suspicion they were to be used in large-scale fraud operations.

Fraud compounds where scammers lure internet users into fake romantic relationships, cryptocurrency investments and betting platforms have flourished across South-east Asia.

Initially largely targeting Chinese speakers, the criminal groups behind the compounds have expanded operations into multiple languages.

Those conducting the scams are sometimes willing con artistes and other times trafficked foreign nationals forced to work.

Officials say the networks operating in Sri Lanka target victims across Asia, including in India, Vietnam and the Philippines, but there are growing concerns Sri Lankans could be next.

The authorities are also investigating whether foreign syndicates were involved in a recent cyberattack on the Sri Lankan treasury that resulted in around US$2.5 million in losses.

China, which has stepped up cooperation with regional governments in recent years to crack down on scam networks, has acknowledged the geographical shift.

Beijing’s embassy in Colombo said illicit activity in Sri Lanka has risen following enforcement actions in Cambodia, Myanmar, as well as the United Arab Emirates.

“The Chinese government attaches great importance to this trend,” the embassy said in a statement, pledging closer cooperation with Sri Lankan law enforcement agencies.

The networks displaced from Myanmar and Cambodia, where the authorities have stepped up raids and deportations, exploit the island’s 30-day tourist visas for nationals of more than 40 countries, including India and China, while others can easily apply for permits online.

Criminal gangs are setting up in rented spaces ranging from luxury villas to office complexes.

Police have begun warning property owners against renting villas and apartments to suspected scam operators, saying they could face prosecution for aiding criminal activity.

The vast scale of these operations has become clearer in recent weeks, with police “getting a lot of calls on a daily basis”, according to ASP Wootler.

He said that in a single night this week, “we carried out five raids” in the coastal Galle and Matara districts, netting 192 Indian suspects and 29 Nepalis.

Another 280 foreign suspects were arrested last week near the capital Colombo, and 135 Chinese nationals were apprehended in March at a single scam centre.

Regional crisis

As cases surge, the immigration authorities are now playing a larger role in investigations.

“We are getting our agents directly involved because of the increase in the number of cases handled by police,” an immigration official said on condition of anonymity.

The expansion of criminal networks mirrors a broader regional crisis. A United Nations report issued in 2026 estimated that at least 300,000 people have been trafficked into scam compounds across South-east Asia.

While Sri Lankan officials say they have not identified foreigners being trafficked into the country, dozens of Sri Lankans have been rescued from scam compounds abroad over the past year.

ASP Wootler said the authorities are doing all they could to tackle the growing problem, deporting foreigners who overstay their visa and ensuring those who engage in online crime are “punished by our courts”. 

-AFP

Editor_1
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