Minister Vijitha Herath faces an urgent decision regarding an issue that demands immediate attention. Sri Lanka’s tourism sector experienced a significant revival in 2024, marking the highest influx of tourists since 2018. Tourism revenue has also seen a notable increase. However, amidst this positive trend, alarming reports have surfaced regarding organized scams allegedly operated by Russian nationals in the country.
These scams, often referred to as “Russian scams,” are illegal operations reportedly conducted with the support of certain political authorities in Sri Lanka. This article delves into the nature of these activities, their impact on Sri Lanka’s economy, and the individuals behind them.
Ruble Transactions and Revenue Leak
One key figure in this saga is Andrei Grecha, a Russian national residing in Sri Lanka on a tourist visa. Grecha runs a restaurant named “Grecha” in the Unawatuna area. Notably, the restaurant operates entirely in Russian rubles, bypassing the Sri Lankan rupee and dollar. Consequently, the revenue generated from the establishment is funneled directly to Russia through Russian bank accounts, depriving Sri Lanka of much-needed foreign exchange. Adding to the concern, the restaurant also accepts cryptocurrency payments, further complicating regulatory oversight.
Illegal Activities and Gambling
The restaurant has gained notoriety for offering illicit entertainment. Among the activities is the gambling game poker, which is popular among Russian tourists and expatriates. These poker games, reportedly hosted in two houses in Hikkaduwa and Unawatuna, often involve large sums of money, starting at approximately Rs. 10,000 and escalating to hundreds of thousands of rupees. The operations are allegedly coordinated through an Instagram account named “Poker Ceylon.” Foreigners, including Russians and Ukrainians, are invited to participate, with payments accepted in rubles.
Moreover, an Instagram group called “Russian Business Club,” also managed by Grecha, promotes these activities. A related Telegram group reportedly boasts over 15,000 members, further facilitating the organization and advertisement of these schemes.
Tourism Packages and Vehicle Rentals
The scam extends beyond gambling. Grecha and his associates reportedly offer travel packages to Russian and Ukrainian tourists. These packages allow tourists to explore various parts of Sri Lanka, but the transactions are conducted exclusively in rubles, again resulting in no financial benefit for Sri Lanka.
Additionally, the operation involves renting scooters and three-wheelers to tourists in areas like Unawatuna. Reports suggest that these vehicle rentals are also managed by Grecha, further consolidating his hold on these activities.
The Need for Immediate Action
These operations represent a significant threat to Sri Lanka’s tourism sector and economy. The unchecked transfer of funds to Russia, coupled with illegal activities such as gambling, raises serious concerns about regulatory enforcement and national revenue losses.
The authorities must act swiftly to investigate and curb these operations. Without decisive action, Sri Lanka risks undermining the gains achieved in the tourism sector and losing vital foreign exchange earnings.
