Deputy Inspector-General Nihal Thalduwa said the men were taken into custody at four locations during raids carried out since October 6, with 129 arrested in one location on Saturday.
Thalduwa said that a large number of mobile phones and laptop computers were also seized.
"We suspect that they were operating online scams from these locations," Thalduwa told reporters in Colombo.
"Their victims include people in Sri Lanka as well as those overseas."
He said investigations were moving slowly due to language issues in questioning the suspects, but the authorities have sought help from the Chinese embassy in Colombo.
Forensic experts were analysing the electronic devices, he said.
In June, police arrested another 200 suspects, mainly Indians, who were also accused of operating online financial scams.
Thalduwa said the suspects had entered the island as tourists and, in most cases, were overstaying their visas.
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