Sri Lanka is increasingly being seen as a refuge for cyber fraud operators, as tougher enforcement in countries such as Cambodia pushes criminal networks to relocate.
Reports say some Indian youths were lured abroad with promises of jobs in Cambodia and other countries, only to have their passports seized and be forced into cybercrime. After learning of the situation, India’s central government rescued several victims and brought them back.
An assessment cited in a US parliamentary committee report last year noted that fraud groups tend to move under international pressure to countries with weaker investigative systems but strong digital infrastructure. Sri Lanka is said to be attractive due to visa-free travel, readily available buildings for rent, robust telecom connectivity and established money-transfer channels, along with easy access to SIM cards.
Police say scammers often enter Colombo and coastal tourist areas posing as visitors, renting houses to run operations. This year alone, authorities have arrested more than 1,000 cybercrime suspects, including over 150 foreigners in an April raid and another 120 foreign nationals later in Colombo.
As enforcement intensified, operators reportedly shifted from rented homes to hotels, apartments and office buildings, which are easier to rent and allow quick escape. Among those arrested were several Chinese nationals; Sri Lanka’s Chinese embassy said it is closely monitoring the arrests. Sri Lanka has sought assistance from the Philippines and Cambodia, while the central bank governor said financial intelligence teams are working with investigative agencies to curb the fraud.
