Sri Lanka is overhauling its immigration and security framework after police investigations into the murder of a Chinese national allegedly exposed sophisticated cybercrime operations that investigators say exploited tourist visa regulations to establish illegal scam centres across the country.
The reforms follow the July 22 abduction and murder of Hao Song, a Chinese national whose killing investigators believe stemmed from an internal dispute involving millions of dollars in cryptocurrency and cash transactions.
While the homicide investigation continues, police say it has revealed a much wider criminal ecosystem involving foreign-operated cyber fraud networks functioning from rented luxury apartments, villas and hotels rather than heavily guarded compounds traditionally associated with organised scam operations in Southeast Asia.
Investigators believe criminal syndicates shifted their operations to Sri Lanka after intensified military and law enforcement action dismantled similar networks in parts of Myanmar, Cambodia and Laos.
Unlike previous models that relied on large enclosed compounds, authorities say the groups adopted a decentralised strategy by leasing premium residential properties throughout Colombo and surrounding districts. Intelligence officials believe the approach allowed operators to avoid attracting attention while maintaining multiple independent scam centres.
Law enforcement agencies have conducted a series of coordinated raids over recent weeks.
In Rajagiriya, police detained 120 foreign nationals allegedly linked to organised online fraud operations. A separate raid in Talangama resulted in the arrest of 37 Chinese nationals and the seizure of 147 mobile phones, 35 tablet computers and hundreds of locally registered SIM cards.
Additional operations targeting luxury hotels and suburban residences in Chilaw and surrounding areas reportedly detained more than 400 foreign nationals within a single week.
Authorities further allege that some syndicates trafficked workers from countries including Vietnam, India and Thailand, confiscating passports and compelling victims to participate in online scam operations under exploitative conditions.
Beyond criminal activity, investigators believe the influx of syndicate-funded operations has affected Colombo’s property market. Real estate inquiries suggest criminal groups allegedly paid unusually high cash rents for apartments and commercial properties, contributing to sharp increases in rental prices in several high-demand locations.
In response, the Government has introduced a series of tougher immigration measures. These include enhanced screening of arriving visitors, mandatory verification of residential addresses for visa extensions, sponsor vetting, proof-of-funds requirements and tighter regulation of commercial internet connections and SIM card registrations.
A Joint Immigration and Police Task Force has also been created with authority to conduct inspections of suspected properties and revoke visas where foreign nationals are found allegedly engaging in unauthorised employment or digital business activities while on tourist visas.
Officials say the objective is to prevent Sri Lanka from becoming a regional hub for transnational cybercrime while ensuring that genuine tourists, investors and expatriate communities are not adversely affected by the ongoing enforcement campaign.