Sri Lanka's fast-expanding network of illegal call centres — operating as sophisticated cybercrime hubs — poses a direct threat to the island nation's national security, financial system stability, and international reputation, according to a detailed report that spotlights the dominant role of Chinese nationals in the racket. The findings, published by Ceylon News 24, draw on official data obtained under Sri Lanka's Right to Information (RTI) Act.

Scale of Arrests and Chinese Involvement

Since its establishment in 2021, the Computer Crime Investigation Division of the Criminal Investigation Department (CID) has conducted five major raids on illegally operated call centres — also referred to as 'Boiler Rooms' — up to 31 July 2026. A total of 408 people have been arrested across these operations, of whom 284 are Chinese nationals.

The pattern has sharpened considerably in 2026. Of the 201 individuals arrested in the first seven months of the year, 156 — nearly 78% — were Chinese nationals, according to the report. This concentration, analysts note, points to a structured and organised participation rather than isolated incidents.

How the Illegal Networks Operate

According to the report, these organised crime gangs deploy highly sophisticated methods to recruit and control their workforce. Foreigners — predominantly Chinese and Vietnamese nationals — are lured into Sri Lanka via online platforms including Telegram, Facebook, and LinkedIn, with promises of high-paying jobs in 'data entry' or 'online marketing'.

Once in the country, victims reportedly have their passports confiscated and are confined in isolated bungalows and hotels, where they are coerced into making fraudulent calls and sending scam messages. The majority of these criminal groups reportedly enter Sri Lanka as tourists before acquiring residential properties to operate their networks.

Notably, while these call centres are physically based in Sri Lanka, their primary targets are reportedly Chinese citizens residing in China. Operating from a foreign jurisdiction makes it significantly harder for Chinese law enforcement to trace the physical locations and server IP addresses of the perpetrators, the report noted.

Threat to Sri Lanka's Reputation and Security

The report warns that the covert spread of these operations carries wide-ranging consequences. Beyond the immediate financial crimes, authorities are concerned about the erosion of Sri Lanka's standing as a legitimate tourist and investment destination.

'Unless authorities act immediately to enforce strict legal and technological measures, Sri Lanka's standing as a tropical paradise will inevitably give way to becoming a major haven for international cybercriminals,' the Ceylon News 24 report cautioned.

This comes amid growing international scrutiny of Southeast and South Asian nations being used as bases for transnational cybercrime syndicates — a pattern also documented in Myanmar, Cambodia, and the Philippines in recent years.

What Happens Next

The report stops short of specifying what legislative or enforcement action Sri Lankan authorities plan to take, but the data released under the RTI Act signals that the CID's Computer Crime Investigation Division is actively escalating its response. Whether bilateral coordination with China will be pursued to dismantle cross-border networks remains to be seen, and observers say the pace of enforcement will determine whether Sri Lanka can credibly contain the threat before its reputational damage deepens.