Lanka Sathosa undergoes transformation at a cost of over Rs. 5 bln

Lanka Sathosa Ltd, the state-owned retail outlet network, is set to undergo a novel transformation but spending over Rs. 5.07 billion at a time the country is facing a serious crash crunch in an economic downturn, cabinet memorandums of the Trade Ministry divulged.

Minister Bandula Gunawardena is expected to submit seven cabinet memorandums seeking the approval of the cabinet of ministers to set up a Sathosa mini super market network covering 14022 gramaseva nildari divisions countrywide and meet the cost of several essential commodity imports, informed sources disclosed.

A sum of Rs.1.5 billion is to be spent to set up one mini super market network and thereafter such networks will be established to cover the whole island at a cost of Rs. 4.5 billion.    

It is also expected to cover the loss of Rs.91.5 million incurred by Sathosa in importing large stock of sprats and selling it at reduced prices for the benefit of consumers, a cabinet memorandum revealed.

Another estimate of Rs. 484 million is to be submitted to the cabinet for the settlement of liabilities of a subsidiary company under the Mahapola Trust Fund.

Minister Gunawardene has also submitted a report indicating his expenditure during his recent official tour of Pakistan, sources added.

Lanka Sathosa Ltd. has been able to exceed its trade turnover of Rs. 41 billion by the end of December 2021, according to minister Gunawardana.

For the first time in history, Sathosa became the largest retail network in the country with Rs. 41.68 billion of trade turnover, he said adding that it has accumulated debt of Rs. 28 billion and a loss Rs. 20 billion from the 2015 to 2019 period during the previous regime.  (Bandula)