– Sri Lanka has emerged as a growing hotspot for foreign-linked online fraud operations, with authorities reporting a sharp increase in cybercrime networks run by foreign nationals across the island.
The growing number of such cases has raised serious concerns among authorities and stakeholders, who warn that these activities are not only undermining national security but also damaging Sri Lanka’s international reputation.
Sampath Perera, Chairperson of the Sri Lanka Institute of National Tourist Guide Lecturers, said the presence of these networks could negatively impact the economy by diverting potential tourism revenue and financial inflows back to foreign criminal operations.
The growing presence of foreign-linked scam networks has coincided with one of the most serious digital financial security incidents in the country’s history. Authorities are currently investigating a large-scale cyber theft involving approximately US$2.5 million, which targeted the Sri Lankan Treasury and was uncovered in late April 2026. The funds, intended for a bilateral debt repayment to Australia, were reportedly diverted to a hacker-controlled account after unauthorized access was gained to the External Resources Department’s email system.
Deputy Minister of Public Security Sunil Watagala told the Daily Mirror that a special unit within the Department of Immigration and Emigration carries out arrests related to foreigners violating visa conditions and informs relevant police stations islandwide to conduct raids on such violations.
He said that most of the foreign nationals arrested for visa-related offences have already been deported to their respective countries with the approval and signature of the Minister.
The Deputy Minister further said that the government is taking legal action against all violators and is enforcing the law strictly. He added that both the government and the Ministry are maintaining a firm stance against illegal activities involving foreigners in Sri Lanka.
Earlier, police said that amid a rising number of foreign nationals allegedly involved in cybercrime and online scams in Sri Lanka, police said that offenders will be prosecuted under the country’s Cybercrimes Act and will not be immediately deported or allowed to leave the country.
In the first half of 2026, a series of coordinated raids across multiple locations has led to the arrest of hundreds of foreign nationals over illegal financial operations and online scams.
One of the most recent operations was carried out in Rajagiriya, where police raided a multi-storey apartment complex along Meda Welikada Road. During the raid, approximately 120 foreign nationals were taken into custody. The suspects, believed to be from countries including China, Vietnam, Malaysia, Madagascar, the Philippines, Thailand and Cambodia, had reportedly occupied several floors of the building to conduct illicit financial activities. Authorities seized a large number of laptops and mobile phones, now undergoing forensic examination as part of the ongoing investigation.
Sampath Perera said the suspects had converted rented spaces into both living quarters and operational hubs. He alleged that the groups were involved in siphoning money from international accounts and carrying out illegal fund transfers, often using the tourism sector as a cover. He warned that such activities could damage Sri Lanka’s global reputation and divert valuable tourism income away from the local economy.
Although around 120 suspects were arrested in the Rajagiriya raid, police believe that several others managed to escape before the operation concluded. Investigations are underway to locate those individuals.
On May 2, a separate raid in Talangama led to the arrest of 37 foreign nationals, including one woman, on suspicion of involvement in computer-related crimes. The operation was conducted by officers from the Walana Central Anti-Corruption Strike Force together with the Talangama Police.
According to police, the suspects, identified as Chinese nationals aged between 23 and 44, were taken into custody and produced before the Talangama Police Station. Investigations revealed that two individuals were residing in the country without valid visas, while another did not possess a passport. Police also seized more than 2,100 illegal cigarettes during the raid. The premises used by the group have since been sealed and placed under guard as investigations continue under the Computer Crimes Act.
Earlier in March, a joint operation involving military intelligence and immigration authorities in Anuradhapura and Mihintale resulted in the arrest of 134 foreign nationals operating from guest houses. This was followed by another major raid in April in Chilaw, where more than 150 suspects were detained for allegedly running a cyber-scam operation from a rented hotel. During that raid, police recovered over 140 laptops and nearly 400 mobile phones believed to have been used in global fraud schemes.
Source: Daily News
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