Key facts
- Sri Lanka is becoming a new hub for foreign cyber-scam operations.
- Chinese-led criminal syndicates are relocating to Sri Lanka following crackdowns in Southeast Asia.
- Authorities have arrested and deported nearly 700 foreigners involved in scam activities this year.
- A recent raid in Colombo uncovered fake documents, including a $10 billion valuation for a fake US company.
- Factors contributing to Sri Lanka's appeal include ease of obtaining tourist visas and limited cybercrime regulation.
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. Sri Lankan police have reported an "alarming increase of cybercrimes" perpetrated by individuals entering the country on tourist visas and illegally setting up scam operations targeting people globally.
Authorities have conducted numerous raids since the beginning of the year, arresting and deporting nearly 700 foreigners. A recent raid in Colombo detained 18 Chinese citizens and one from Laos, uncovering a sophisticated operation with fake documents, including a falsified legal certification and a framed certificate showing a fake US company valuation of $10 billion. Passports, phones, laptops, and other equipment were also seized.
Superintendent of police Kamal Ariyawansa confirmed a Chinese crime syndicate was behind the operation, which aimed to scam American victims. While Chinese nationals form the majority of those arrested, individuals from Vietnam, India, Indonesia, Laos, the Philippines, Malaysia, and Myanmar have also been detained.
The transnational scam industry, largely controlled by Chinese gangs, has become one of the largest organized-crime enterprises globally, with the United States estimating $10 billion in losses to Southeast Asian scam centers in 2024. As political pressure mounted on host countries in Southeast Asia, scam compounds faced significant crackdowns, prompting a search for new locations.
Experts suggest Sri Lanka's appeal lies in the ease of obtaining tourist and digital nomad visas, limited regulation on sim cards and internet connections, and affordable rental prices for offices and hotels. The country's existing Chinese business presence also makes foreign visitors less conspicuous. Furthermore, Sri Lanka has relaxed rules around online gambling and gaming, and its cybercrime enforcement mechanisms are perceived as limited, often leading to deportation rather than prosecution.
Cybercrime researcher Mark Bo noted a shift towards Sri Lanka starting two years ago, evidenced by mentions on Telegram and recruitment drives. He observed the "exact same set-up" being transplanted, highlighting the industry's mobile and adaptable nature. The operations are reportedly avoiding detection by working in small groups that rotate locations every three months, with some operations renting entire floors of apartment buildings. The Chinese embassy in Colombo has publicly acknowledged its citizens' involvement in telephone fraud gangs and stated its full support for Sri Lankan law enforcement in cracking down on suspects.