Organized cybercrime networks from India and China are exploiting Sri Lanka’s weak cyber defenses, hiring locals with promises of huge pay while secretly running billion-dollar fraud and gambling operations that threaten the island’s economy and security.
Sri Lanka is facing a growing threat from highly organized cyber scam networks operated by Indian and Chinese criminal groups, who are rapidly transforming the country into a base for online fraud and gambling operations. Exploiting weak cybersecurity infrastructure, regulatory gaps, and economic desperation, these groups have found fertile ground to establish operations with minimal scrutiny while luring local youth with high salaries and false promises.
In September, shocking reports surfaced that an entire floor of a Colombo luxury hotel belonging to a major Asia-based international chain had been leased out by a mysterious group. Within days, they began hiring Sri Lankans at unusually high pay, but with strict secrecy protocols. Workers were banned from bringing devices beyond the first security checkpoint, with two more layers of screening required to gain access. According to a source who spoke under confidentiality, the environment was “almost militarized” in its secrecy.
These incidents are not isolated. Insiders confirm that many operators enter Sri Lanka on tourist visas, using the cover of legitimate travel to run sprawling cyber scam hubs. These operations are lavishly funded, with reports of bribes to local officials, imports of original Chinese foods at high freight charges, and security systems designed to prevent outsiders from prying. According to an industry source, “These Chinese scammers are extremely well organized. They target India, Dubai, China, and even Western markets, while using Sri Lanka as a relatively unmonitored front.” Local banks have issued repeated warnings urging customers not to share sensitive data like OTPs, as scam activity intensifies.
Parallel centers have also been identified in Colombo neighborhoods such as Kollupitiya, Wellawatte, and Bambalapitiya, many of which are allegedly staffed by Indian nationals. Similar to the Chinese operations, these centers are tightly restricted, with no outsiders allowed inside and employees strictly prohibited from discussing their work. For many criminals, Sri Lanka has become attractive not only for profit but also for security. Lax property regulations, cash-based deals, and economic instability make it easier to set up front operations. As one observer noted, “Many Indians first came for casinos, but now cyber scam centers are replacing gambling tables. They enjoy both luxury and relative safety in Sri Lanka.”
The weak response from Sri Lankan authorities has only emboldened these networks. Cybersecurity experts warn that the country lacks basic protective systems such as firewalls and restrictions on illicit online content. One analyst described the situation bluntly: “Any content, even on the dark web, can be accessed in Sri Lanka without restrictions. That is absurd for any modern society.” This lack of regulation, combined with limited police expertise in handling digital crimes, has turned Sri Lanka into a haven for foreign cybercrime operations.
Meanwhile, India and China themselves are cracking down hard on cybercriminals. In a dramatic example, China recently sentenced sixteen members of the Ming crime family to death for operating massive scam compounds in Myanmar’s Kokang region. These centers were linked to billions of dollars in fraud, forced labor, and even deaths of Chinese nationals trying to escape. Eleven ringleaders were executed immediately, five received suspended death sentences, and twenty-three others were sentenced to long prison terms. The crackdown sent a clear message that Beijing will not tolerate large-scale cybercrime, even in politically sensitive border zones. Activists have urged the international community to pressure Myanmar’s military junta to dismantle the militia-backed networks that enable such crimes.
For Sri Lanka, however, the picture is far more troubling. The convergence of international cybercriminals, weak oversight, and willing local recruits has created a dangerous ecosystem. The risk is not only reputational but also financial. If Sri Lanka becomes known globally as a safe haven for cyber scams, it will face long-term economic fallout. Investor confidence could decline, the country’s fragile banking sector could be destabilized, and international sanctions or restrictions could follow if foreign governments lose patience.
The employment factor adds another layer of complexity. Many young Sri Lankans, desperate for work in a struggling economy, are drawn in by the high salaries offered by these scam centers. While some may be aware of the illegal nature of their work, others are misled into thinking they are part of legitimate business operations. This recruitment not only fuels criminal enterprises but also creates a generation of workers who may be blacklisted internationally for their involvement in fraud.
Without urgent intervention, Sri Lanka risks becoming permanently embedded in the global cybercrime supply chain. Experts argue that the government must immediately strengthen digital defenses, enforce stricter visa and property regulations, and increase training for law enforcement in tackling online crime. Regional cooperation with India and China, despite political sensitivities, may also be essential to share intelligence and cut off cross-border networks.
The global cyber scam industry siphons billions every year, and Sri Lanka’s entry into this shadow economy represents a serious security and economic threat. Observers warn that if urgent reforms are not implemented, the country’s banking system, already under pressure, could face devastating consequences. The lure of easy money and the absence of strong governance has created the perfect storm, and unless addressed, Sri Lanka may soon find itself branded internationally as a hub for fraud, scams, and digital exploitation.
The message is clear: Sri Lanka cannot afford to delay. The choice now lies between strengthening law enforcement and cybersecurity or allowing foreign criminal organizations to continue expanding unchecked. The risk is not just national but global, as victims from Dubai to Delhi fall prey to scams run from Colombo apartments and luxury hotels. If Sri Lanka wants to protect its economy, restore its credibility, and ensure long-term stability, urgent action against these cyber scam empires is no longer optional—it is inevitable.
