Lanka emerges as possible new base for transnational scam networks

Sri Lanka is increasingly becoming a potential hub for transnational cyber-scam networks, according to a report by East Asia Forum (EAF). The report, authored by Junqing Zhang, indicates that Sri Lankan authorities have conducted over a dozen raids targeting suspected cyber-fraud operations since the start of the year. These raids have resulted in the arrest or deportation of hundreds of foreign nationals, many of whom had entered the country on tourist visas.

The number of arrests in 2026 has surpassed 1,000, compared to 573 in 2024. These operations have predominantly targeted Chinese, Indian, and other Southeast Asian nationals in the western coastal areas. This trend is part of a broader regional crackdown on scam networks, with similar operations occurring in Cambodia, Myanmar, Thailand, and Laos, many of which are believed to be linked to Chinese-speaking criminal networks.

Chinese authorities have also increased joint operations and judicial cooperation with Southeast Asian governments to combat online fraud. However, it is unclear whether Sri Lanka is serving as a direct relocation point for these criminal networks or if it is simply one of several destinations for the mobility of such operations.

The decentralised nature of modern scam operations, often run by smaller teams from multiple locations, makes them harder for authorities to detect and dismantle. Factors such as accessible tourist and digital-nomad visas, low accommodation and office costs, robust telecommunications infrastructure, and established cross-border financial networks in Sri Lanka make it an attractive destination for these operations.

Authorities face the challenge of expanding their efforts beyond mere arrests and raids, requiring better coordination across immigration monitoring, financial investigations, telecommunications regulation, and cybercrime investigations. Moreover, distinguishing between organised crime suspects and potential trafficking victims is crucial.

The rise of these networks could have broader implications for Sri Lanka, affecting its tourism and investment reputation, financial system, and already strained law-enforcement resources. International investigations have highlighted that many individuals involved in online scam operations in Southeast Asia were recruited through deception or coercion, sometimes even forced to participate in criminal activities.

This situation underscores the need for greater regional intelligence-sharing, coordinated financial investigations, and cooperation on digital evidence to effectively dismantle these networks rather than merely displacing them.