First state-owned mega mall in November
2 years ago
By The Sunday Morning Business Desk “Raja Vaasa”, a shopping complex owned and managed by the Government, is set to open its first branch at the premises of the Narahenpita Economic Centre in November this year, The Sunday Morning Business learns. The shopping complex would comprise showrooms by state-owned institutions that can trade goods and services, such as the Sri Lanka Tea Board, Sri Lanka Cashew Corporation, State Pharmaceuticals Corporation (SPC), Sri Lanka Ayurvedic Drugs Corporation, National Paper Co. Ltd., and Sri Lanka Telecom (SLT). A spokesperson from the Ministry of Trade stated that at the moment, an abandoned building on the premises is being renovated for this purpose and as of last week, about 80% of the work was completed. The spokesperson added that through this, the Ministry aims to provide goods and services at a concessional rate to consumers. “We spoke to several state institutions to come onboard and provide goods and services at a low rate compared to their rates outside the complex. Most of them responded positively and we are working on getting others too,” the spokesperson added. Depending on the success of this shopping complex, the Ministry expects to launch a similar shopping complex in Pettah that thousands of people can visit every day for shopping purposes. The project will then continue to open shopping complexes in all the districts in Sri Lanka offering state-owned institutions’ goods and services under one roof, making it convenient to both the customer and the institutions. State-owned institutions’ losses doubled in 2018, according to the 2018 Ministry of Finance Annual Report, which also showed that the main 54 state-owned enterprises made a net loss amounting to Rs. 26,070 million. In 2018, the total revenue generated by 54 state-owned business enterprises (SOBEs) amounted to Rs. 1,916.02 billion, of which 37 SOBEs recorded a net profit amounting to Rs. 130.66 billion while 16 SOEs reported net losses amounting to Rs. 156.73 billion. In the overall context, SOBEs recorded a loss amounting to Rs. 26 billion arising from the loss of Rs. 104 billion recorded by the Ceylon Petroleum Corporation (CPC).