Sri Lanka probes Chinese cyber fraud links after Colombo clash

A violent clash involving Chinese nationals in Sri Lanka's Colombo Port City has triggered a major criminal investigation after investigators found evidence suggesting the confrontation may be linked to an international cyber fraud operation allegedly run by Chinese criminal networks.

The incident has raised concerns that sophisticated cyber fraud syndicates, which have proliferated across Myanmar and other parts of Southeast Asia, may have established a presence in Sri Lanka.

Last week, two Chinese nationals were arrested while attempting to leave the country through Colombo's Bandaranaike International Airport, while another Chinese national was found dead in the Sri Lankan capital. Police investigations showed the three had entered Sri Lanka about four months earlier, with no record of lawful employment or legitimate business activity.


The operating model in Sri Lanka differs from the large scam compounds seen in Myanmar and Cambodia.

Instead, the networks operate through smaller cells of five to 10 people that rotate between hotels, rented apartments and offices every few months, Colombo-based sources told ET.

Sri Lankan officials believe syndicates disrupted in Myanmar, Cambodia and Laos are relocating to the island nation.

China-linked cyber scam networks in Southeast Asia operate large, heavily guarded compounds that generate tens of billions of dollars annually through human trafficking, cryptocurrency investment fraud and other cyber scams, aided by regional corruption. These operations are concentrated in poorly governed areas of Myanmar, Cambodia and Laos along the Chinese border.

Thousands of Indian job seekers have been trafficked by Chinese-led criminal syndicates into these compounds, where they are held captive and forced to run international cyber and financial scams. As of early 2026, the Indian government had rescued nearly 7,000 citizens from these scam centres. Indian embassies in Myanmar, Cambodia and Laos have worked with local authorities to rescue Indian nationals.