Sri Lanka police have searched a hotel in Panadura and seized 23 computers and other electronic devices in a suspected online financial fraud investigation, after finding 32 Chinese nationals staying there.

The search took place at a hotel in Nalloruwa, in the Panadura South Police Division, on 6 and 7 November 2026. It was carried out by the Panadura Division Criminal Investigation Unit, acting on information passed to the senior superintendent of police in charge of the Panadura Division that Chinese nationals were running an illicit online business from the hotel.

Officers acted under a search warrant issued by the Panadura Magistrate's Court. The operation also involved the Criminal Investigation Department, the Police Special Task Force, the Crime Records Division, the Police Kennel Division and the Department of Official Languages.

Thirty-two nationals found, computers seized

During the search, officers found 32 Chinese nationals at the hotel and seized 23 computers along with other electronic devices. The seized items were handed over to the Panadura South Police, and the Criminal Investigation Department has taken over the inquiry.

A police media release dated 8 November confirmed the search and the seizures. Reports of the operation appeared in Sri Lankan media on 8 and 9 November.

No charge reported yet

It is important to be clear about what has and has not been established. No charge has been reported against any of the 32 nationals, and no court appearance has been reported. The names of the individuals have not been published, and the hotel itself has not been named in reports. News outlets have differed on whether the 32 were formally arrested or taken in for questioning, and police have not yet said what the seized computers contain.

The investigation is therefore at an early stage. The Criminal Investigation Department is examining whether an offence occurred, and the case remains a suspected online fraud probe rather than a proven fraud.

Public urged to report suspicious activity

Police have urged members of the public to report any suspicious activity by foreign nationals staying at hotels or guest houses, and to call the police emergency numbers 118 or 119 with information.

The operation follows a pattern of similar raids in recent years. Police statistics cited in local reporting say that well over 1,000 foreign nationals have been arrested in targeted operations over recent years, with a significant number of them Chinese nationals accused of involvement in online fraud. The Panadura case will now be watched to see whether the seized devices produce evidence that supports a prosecution, or whether the inquiry closes without charges. (Daily FC, Asian Mirror)