by Our Correspondent in Colombo
Sri Lanka is rapidly becoming a hub for highly organized cyber scams operated by Chinese and Indian networks, exploiting both local youth and the country’s vulnerable digital infrastructure. In a shocking development last month, an entire floor of a luxury hotel in Colombo—part of a major Asia-based international chain—was leased by a mysterious group, who immediately began hiring local employees at unusually high salaries. However, the work came with strict, almost militarized secrecy protocols. “You are not allowed to talk about anything we do here, and no devices can enter beyond the first security layer. Two more layers of screening follow before access is granted,” a source revealed under strict confidentiality.
These operations are not isolated incidents but part of a growing criminal ecosystem in Sri Lanka. According to insiders, many of the key operators arrive on tourist visas, using the guise of legitimate travel to run sprawling cyber scam and gambling centers. “These Chinese scammers are extremely well organized. They have money to bribe anyone, import original Chinese foods at high freight charges, and maintain airtight security,” an industry source said. The majority of these operations target markets in India, Dubai, China, and beyond, with Sri Lanka emerging as a new, relatively unmonitored front. Local banks have continued to warn customers to remain cautious, particularly against sharing OTPs or other sensitive information.
Similar centers have reportedly sprung up in Colombo’s Kollupitiya, Wellawatte, and Bambalapitiya areas, primarily staffed by Indians. “No one is allowed inside freely, and while the pay is unimaginable, employees are prohibited from sharing any details about their work,” another source explained. The lucrative operations are attracting criminals seeking both profit and security, exploiting lax property regulations and the relative ease of manipulating property owners with cash offers. “Many Indians came for casinos initially, but now they’re establishing cyber scam centers in Sri Lanka. They enjoy a luxurious life and relative safety here,” the source added.
Sri Lankan authorities, however, have struggled to address the issue. Experts warn that the country’s cybersecurity infrastructure is dangerously weak, lacking robust firewalls or regulations to restrict access to illicit online content, including the dark web. “Any content can be accessed without restrictions, including illegal or harmful sites, which is absurd for any society,” a cybersecurity analyst told the Sri Lanka Guardian. The absence of specialized technology or attention from law enforcement has made Sri Lanka an attractive haven for these operations.
Meanwhile, both China and India are cracking down aggressively on cybercrime within their own borders. China recently imposed death sentences on sixteen members of the Ming crime family, who had been operating massive scam compounds in Myanmar’s Kokang region. The court found the syndicate responsible for financial losses exceeding $1.4 billion, and for the deaths of dozens, including Chinese nationals attempting to escape forced labor within the scam centers. Members of the Ming family were also tied to militias aligned with Myanmar’s military junta. Eleven of the ringleaders were executed immediately, five received suspended death sentences, and 23 others were sentenced to long prison terms.
This unprecedented crackdown underscores Beijing’s determination to prevent cross-border scams and protect its citizens, even in politically sensitive regions like Kokang. Experts note that while Southeast Asia’s cyber scam networks siphon billions annually, these prosecutions send a clear message that large-scale fraud and associated violence will not be tolerated. Activists have also emphasized the need for international pressure on Myanmar’s military to disrupt the financial networks fueling cyber scams and human trafficking.
With Sri Lanka increasingly in the crosshairs of these international cybercrime networks, the island nation faces mounting economic and security risks. The convergence of lax local oversight, high-paying recruitment, and sophisticated foreign criminal organizations has created a perfect storm that threatens not only the country’s banking sector but its overall economic stability. Observers warn that without urgent measures to strengthen digital security and enforce law and order, Sri Lanka could become a permanent safe haven for cyber fraud operations targeting the global community.
