Key facts
- Sri Lanka is becoming a new hub for foreign cyber-scam operations.
- Over 1,000 foreigners have been arrested in Sri Lanka this year for scam activities.
- Chinese-led criminal syndicates are relocating to Sri Lanka following crackdowns in Cambodia and Myanmar.
- Factors contributing to Sri Lanka's appeal include visa-free travel, available space, and telecommunications infrastructure.
- Scammers often enter the country on tourist visas and set up operations in beach resorts, office buildings, and apartments.
- Authorities have conducted numerous raids, uncovering forged documents and sophisticated scam setups.
Sri Lanka is increasingly becoming a new base for foreign cyber-scam operations, particularly those run by Chinese-led criminal syndicates, as crackdowns in Southeast Asian countries like Cambodia and Myanmar push these networks to relocate. The island nation's combination of visa-free travel, available real estate, relatively strong telecommunications networks, and an established informal money transfer system make it an appealing destination for these illicit activities.
Sri Lankan police and customs officials are confronting this challenge, with authorities reporting the arrest of over 1,000 foreigners this year alone. Many of these individuals entered the country on tourist visas and subsequently set up scam operations in popular beach areas or in the capital, Colombo. Recent raids have uncovered sophisticated setups, including fake legal certifications, forged US treasury documents, and fake company registrations claiming valuations of billions of dollars.
Experts warn that Sri Lanka has a limited window to address this growing problem, as the scammers are often sophisticated and can quickly move operations. Some operators are shifting from large compounds to hotels and apartment buildings that can be rented and abandoned rapidly, making them harder to track. The United States estimates that Americans lost approximately $10 billion to scam centers in Southeast Asia in 2024.
China has acknowledged the issue, with its embassy in Sri Lanka stating it is closely monitoring reports of arrests, including those of Chinese nationals. The relocation trend reflects a broader pattern of scam operations expanding globally, appearing in regions with what a U.S. congressional committee described as 'regulatory stress' and weak enforcement capabilities but strong digital infrastructure. Authorities in Sri Lanka are collaborating with the immigration department and the central bank to control the situation.