Colombo: At least 39 Chinese nationals have been arrested by Sri Lanka's Aluthgama police in connection with online financial fraud, Daily Mirror reported.

Police said the suspects had defrauded millions of money over several months through the internet from the accounts of people in different countries.

The group had been staying in a tourist resort in the Kaluamodara area in Aluthgama and Police said they were arrested based on complaints received through several embassies, Daily Mirror reported.

While the arrested Chinese nationals were taken to the Alutgama police, several smartphones and cash in their possession were also taken into custody by police, the English daily reported.

This is the second incidence this week of Chinese nationals being arrested from another country for online fraud.

In another such incident, three years after arresting 122 Chinese nationals from different parts of Kathmandu for their suspicious activities, Nepal police on Tuesday nabbed nine China nationals for their alleged involvement in online fraud. Police also arrested 10 Nepalis who were allegedly helping them in the business, The Kathmandu Post reported.

Police said this time they have 'strong evidence' to file an online fraud case. "Earlier, the police would be short of evidence as they would be found to be running a call centre or doing some other legitimate activities," said Senior Superintendent of Police Manoj KC, who is also the in-charge at the Valley Crime Investigation Office, Minbhawan, adding, "But this time we have enough evidence."

"They were found duping Nepalis of money from their illegal offices in the Valley," KC said.

"Through these offices, they ran online classes called 'Operation Teacher' over Telegram," he added.

The crime office in charge said the operators would make various tempting offers to general people after initially connecting over WhatsApp and then making them join online classes via Telegram.

Police said one of the victims lost Rs4.7 million in the business whereby the Chinese would send messages via WhatsApp with an offer of investment in an online business from where one was liable to get over 30 per cent net profit.