Rising Chinese Criminal Activity in Sri Lanka: A violent clash between Chinese gangs in the Chinese-backed Colombo Port City, combined with raids arresting and deporting nearly 700 foreign nationals (mostly Chinese) involved in cyber-scam centers, indicates that Southeast Asian crackdowns have pushed Triad-linked and Chinese-run scam networks to relocate to Colombo.

Early Warnings and Dual Narratives: Former U.S. Ambassador Alaina Teplitz cautioned in 2021 that special legislation for Port City risked creating a haven for money laundering and illicit actors; Beijing frames the projects as economic “engines,” while U.S. and other observers highlight debt traps, corruption risks, and potential CCP–Triad links via groups like the World Hongmen association.

Strategic and Regional Risks: Unchecked infiltration of Chinese criminal networks tied to Belt and Road investments could undermine Sri Lanka’s sovereignty and regional stability, complicating relations with India and requiring stronger mechanisms to distinguish legitimate Chinese investment from criminal or gray-zone activities.

What U.S. Ambassador Alaina Teplitz warned in 2021 is now playing out in Sri Lanka. Last week, a violent clash between two Chinese gangs in the Chinesebacked Colombo Port City left one man dead. Investigators are probing possible links to Chinese Triad networks—among the largest criminal syndicates in China, notorious for drug trafficking, illegal gambling, racketeering, human smuggling, and other transnational crimes.

Teplitz had cautioned during discussions on special legislation for the Port City, which many feared could turn the project into a moneylaundering haven. “Unintended consequences could be creating a haven for money launderers and other sorts of nefarious actors to take advantage of what was perceived as a permissive business environment,” she warned.

Later, in an exclusive interview with the Trinco Centre for Strategic Studies, Teplitz reiterated U.S. concerns:........

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