COLOMBO - A surge in arrests of suspected foreign scammers has authorities concerned that Sri Lanka is fast becoming a hub for online crime, following sweeping crackdowns in hotspots Cambodia and Myanmar.
Officials say some scam networks forced out of Southeast Asia have shifted operations to Sri Lanka-an attractive destination due to a relaxed visa regime and reliable, high-speed internet.
Since the start of the year, police have arrested more than 1,000 foreigners, mainly from China, Vietnam and India, for alleged involvement in cybercrime. That's a jump from 430 for all of 2024.
Last month, customs officials intercepted nine Chinese nationals attempting to smuggle hundreds of used mobile phones and laptops, raising suspicion they were to be used in large-scale fraud.
Fraud compounds-where scammers lure victims into fake romantic relationships, cryptocurrency investments and betting platforms-have flourished across Southeast Asia. The criminal groups initially targeted Chinese speakers but have expanded into multiple languages.
Authorities are also investigating whether foreign syndicates were involved in a recent cyberattack on the Sri Lankan treasury that resulted in around $2.5 million in losses.
China has acknowledged the geographical shift. Beijing's embassy in Colombo said illicit activity had risen following enforcement actions in Cambodia, Myanmar and the UAE.
The networks exploit Sri Lanka's 30-day tourist visas for nationals of more than 40 countries, including India and China. Criminal gangs set up in rented spaces ranging from luxury villas to office complexes.
Police have begun warning property owners against renting to suspected scam operators, saying they could face prosecution. In a single night this week, police 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.
A United Nations report issued this year estimated that at least 300,000 people have been trafficked into scam compounds across Southeast 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.