KPMG to restructure Lanka Sathosa, re-opening July 7

    KPMG Colombo, the local office of the global accountancy consultancy, has been assigned to restructure Lanka Sathosa, the loss-making state food retailer, the Ministry of Commerce and Industry said on Wednesday. Minister Rishad Bathiudeen told a news conference in Colombo that President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe after discussions with Finance Minister Ravi Karunanayake decided to enlist the services of KPMG for this purpose. “KPMG is expected to find ways to sustain Lanka Sathosa in a profitable manner while giving the best market prices to Lankan consumers,” he told reporters. The minister said the crisis hit retailer owes Rs 10 billion to two banks and another Rs 3 billion to suppliers at its 305 outlets across the country. The minister said as a start, KPMG has advised the government on streamlining and regularising the organisation while the government will pay off a large component of the pending bills. The restructured organisation will be re-launched on July 7. Goods to the value of Rs. 1 billion and rice to the value of Rs. 8 billion, both un-saleable, are lying at Lanka Sathosa at this moment. “Also Rs. 600 million has been over-spent to computerise 80 shops and 16 stores and we now learn that it could have been completed with only Rs. 300 million,” the minister said.