• Loss of Rs. 24 b uncovered along with Rs. 5 b unpaid loans, Rs. 11 b supplier dues 
• 250 out of 454 branches unprofitable owing to public non-patronisation, political ownership of buildings

A loss of Rs. 24 billion has been uncovered at the Lanka Sathosa, with billions more in unpaid loans and supplier dues adding to a crisis within the institution, Deputy Minister of Trade, Commerce, and Food Security R.M. Jayawardana said.

Speaking to The Daily Morning, he said that the Sathosa has suffered a loss of Rs. 24 billion over the past years, in addition to failing to repay loans amounting to Rs. 5 billion, while more than Rs. 11 billion is owed to suppliers. 

“Because of this, suppliers now deliver goods to the Sathosa only after providing to others. We are maintaining the Sathosa under this crisis,” he said.

He also said that the institution currently operates 454 branches across the country. Of these, he claimed that about 250 are not making profit. “We studied the branches and found that some were set up for purely political reasons in areas where people don’t gather. Some have even been established in buildings owned by politicians. These branches don’t generate income. We have planned to relocate them in the coming months”

The Ministry of Trade, Commerce, and Food Security earlier announced that a comprehensive audit is underway into past irregularities and corruption within the Sathosa and cooperative institutions. Jayawardana said at the time that while a large number of institutions under the ministry generate significant revenue, they also present a high risk for fraud and malpractice.

Lanka Sathosa, established in 2005, is Sri Lanka’s largest State-owned retail network, operating over 450 outlets and employing more than 4,500 people. It was created to strengthen food security by ensuring affordable goods for the public.