Following crackdowns in the Philippines and Cambodia, criminal syndicates operating illegal online gaming and scam compounds are increasingly relocating to Sri Lanka, particularly the Port City Special Economic Zone, recruiting thousands of foreign workers with promises of high salaries and attracting international…

Sri Lanka is investigating a surge in illicit online gaming operations as the island nation becomes an attractive destination for criminal syndicates previously based in Southeast Asia. Thousands of workers from China, the Philippines, Vietnam and Cambodia have arrived in recent months, many without valid work permits, to staff operations targeting jurisdictions where gambling is prohibited. The shift follows the Philippines' 2024 decision to shut down all Philippine Offshore Gaming Operators (POGOs), which President Ferdinand Marcos Jr. described as fronts for human trafficking, money laundering, cybercrime and violence.

Recruiting efforts have intensified across social media platforms, with advertisements explicitly targeting former POGO workers and highlighting Sri Lanka, particularly the Port City Special Economic Zone in Colombo, as a more stable alternative. Recruitment sites have noted that unlike the Philippines' "boom-tighten cycle," Sri Lanka offers what they describe as a clearer legal framework. Larger syndicates, predominantly Chinese-owned with some Malaysian management, offer monthly salaries of $1,200 to $2,000, free accommodation in luxury apartments, and meals prepared in East Asian styles. However, smaller operations in remote locations have been documented confiscating workers' passports and operating closed compounds.

The gaming operations frequently extend into criminal activities beyond gambling. According to investigative reporting, gaming compounds have engaged in cybercrime, hacking government websites, and financial scamming. Sri Lanka's Treasury was targeted by cyber operatives in 2026, and recent months have seen suspected Chinese criminals abduct individuals in the Port City area, with at least one murder reported. These operations target multiple jurisdictions including Vietnam, Nigeria and other countries where gambling is illegal or restricted.

Government authorities have responded with enforcement actions. Sri Lanka shut down 122 websites this week and arrested over 1,000 foreign nationals in raids across provinces. A gambling regulator has been established, with regulations expected later this year. Deputy Minister Eranga Weeraratne stated that planned rules will apply throughout the island, including the Port City, and emphasized ongoing international collaboration with Thailand, Cambodia and other nations to address what officials characterize as a cross-border issue.