In April 2026, police walked into a luxury hotel in Ambakandavila and arrested 150 people. Of those, 133 were Chinese nationals, 13 were Vietnamese and one was Malaysian. Officials suspect the hotel was serving as a large cyber fraud center tied to international criminal networks.
It was one of several raids. Since mid-2024, the Sri Lanka Police and the Criminal Investigation Department have been chasing scam operations across the island, with raids in Kandy, Panadura and Negombo. Several of the centers were allegedly run out of luxury hotels and guest houses.
What was seized
Investigators carried off hundreds of computers and mobile devices. They also took SIM-box equipment, which can run hundreds of SIM cards at once. With gear like that, a small crew can push out thousands of fraudulent calls and text messages and run online scam campaigns aimed at victims in several countries.
Why Sri Lanka
Networks that once worked mainly out of Myanmar, Cambodia and Laos are reported to be moving to Sri Lanka. Investigators cited economic instability, relaxed scrutiny of foreign investment and regulatory loopholes as the draw. Foreign-run centers linked to syndicates in Myanmar and Cambodia have turned up, and reports name Chinese and Nigerian nationals among the main operators.
How the scams work
Much of the concern centers on pig-butchering fraud. The scammer spends weeks or months building a friendship or romance with the target on social media, messaging apps or dating platforms. Then comes the pitch for a fake cryptocurrency or investment platform.
Authorities also describe VPNs, phishing links, hacked social media accounts and fake identities. In several cases, compromised WhatsApp accounts were used to ask for money, with victims told to pay into local bank accounts controlled by the scammers.
Experts quoted in the reporting say tighter regulatory oversight, international cooperation and better cybersecurity will be needed if the country is to avoid becoming a permanent base for these groups.
