Key facts
- Sri Lanka is emerging as a hub for transnational cybercrime due to relocated Chinese scam networks.
- Sri Lankan police have observed an alarming increase in cybercrimes perpetrated by foreign nationals.
- Hundreds of foreigners, primarily Chinese citizens, have been arrested and deported for involvement in scam operations.
- Raids have uncovered sophisticated scam setups with forged documents, including fake US company registrations.
- Scam operations are mobile, rotating locations to avoid detection.
- The Chinese embassy has acknowledged its citizens' involvement and pledged support to Sri Lankan authorities.
Sri Lanka is experiencing an 'alarming' increase in cybercrime as Chinese-run transnational scam networks relocate from Southeast Asia following intensified crackdowns. These operations, often staffed by trafficked or coerced workers, target individuals globally with romance scams, crypto fraud, online gambling, and money laundering.
Sri Lankan police have conducted numerous raids since the beginning of the year, arresting and deporting nearly 700 foreigners, predominantly Chinese nationals, who entered the country on tourist visas to establish these scam operations. A recent raid in Colombo uncovered sophisticated setups including forged US company registrations valued at $10 billion, numerous passports, and electronic devices.
Experts note that Sri Lanka has become a favored destination due to the ease of obtaining tourist and digital nomad visas, limited regulation on sim cards and internet access, and affordable rental prices for offices and hotels. The country's existing Chinese infrastructure presence and relaxed online gambling rules also contribute to its attractiveness for these criminal enterprises.
These operations are highly mobile, with groups rotating locations every three months to evade detection, and are backed by significant financial resources. The Chinese embassy in Colombo has acknowledged the issue and pledged full support to Sri Lankan law enforcement in combating these activities.