The Citizens’ Power Against Bribery, Corruption, and Waste has brought to light the alarming activities of Russian nationals in the Unawatuna area, who, under the guise of tourism, are conducting unauthorized business operations. These activities pose a significant threat to Sri Lanka’s local tourism industry, foreign exchange reserves, and overall economy.
The “Gretcha” Restaurant: A Hub for Illegal Transactions
At the center of the controversy is the “Gretcha” restaurant, located next to the Unawatuna Happy Banana Hotel and run by Russian national Andrei Gretcha. The restaurant allows payments in Russian rubles, bypassing local currency regulations. Customers can transfer money to Russian bank accounts or withdraw funds using QR codes linked to crypto wallets.
Gretcha is reportedly involved in a larger tourism business that operates in collaboration with the restaurant. Tourists pay for services exclusively through these unconventional methods, avoiding local banking systems and tax obligations.
Illegal Gambling Operations
Alongside the restaurant, a secretive high-stakes poker game is allegedly run by a Belarusian associate named Kirill. While the minimum entry fee is 10,000 rupees, Russian participants often gamble hundreds of thousands of rupees daily. These games are hosted at undisclosed locations in Unawatuna and Hikkaduwa, evading Sri Lankan gambling regulations, which require strict licensing and oversight.
The poker games are promoted through an Instagram account called “Poker Ceylon,” where participants can also make payments in rubles. This illegal operation is draining the country’s foreign exchange reserves and depriving the government of significant tax revenue.
Telegram Groups: Facilitating Business and Money Transfers
Gretcha is also the administrator of a Telegram group called “Russian Business Club,” which connects Russian and Ukrainian tourists with local services such as tour packages, scooter and house rentals, and money exchanges. The group has nearly 15,000 members and serves as a platform for Russian nationals to advertise their businesses, charging $30 per advertisement.
The unique aspect of this group is its exclusivity as local Sri Lankan businesses are strictly prohibited from advertising and Sri Lankans attempting to join the group are quickly removed.
Money is exchanged through a cardless ATM system provided by a private Sri Lankan bank. Tourists transfer funds to a Russian bank account, and a local representative provides them with codes to withdraw money from ATMs, completely bypassing local banking systems.
Impact on the Local Economy
These activities not only harm legitimate local businesses by creating unfair competition, but also result in substantial losses in foreign exchange and tax revenue for Sri Lanka. Furthermore, the exclusive use of rubles in transactions isolates the local economy, undermining the rupee’s value.
Wanted by Russian Authorities
The key figure behind these operations, Andrei Gretcha, is referred to as “Papa” within the Russian community in Sri Lanka. He is reportedly a wanted individual in Russia and has avoided returning to his home country since arriving in Sri Lanka.
Call for Immediate Action
The Citizens’ Power Against Bribery, Corruption, and Waste has urged the Sri Lankan government to take swift action against these activities. They emphasize the need for stricter enforcement of immigration, tax, and financial regulations to protect the local tourism industry and prevent further economic losses.
The organization has also called for a thorough investigation into the activities of Gretcha and his associates, as well as the businesses they operate. Increased oversight of money exchange systems and stricter regulations for foreign nationals conducting business on tourist visas are essential to curb these illegal practices.
The revelations underscore the urgent need for the Sri Lankan government to strike a balance between fostering international tourism and safeguarding the interests of local businesses and the national economy.
