Lanka Sathosa

Lanka Sathosa also known as Sathosa is a wholesale and retail chain located in Sri Lanka. It is considered to be the largest state-owned retail chain in the country and was established in 2005.[1] Sathosa was incorporated as a state-owned enterprise under Companies Act no 7 of 2007 and it is regulated by the Ministry of Industry and Commerce. The main function of Sathosa is to set prices of many essential items in the domestic retail market.

Lanka Sathosa
Typeretail chain, state owned company
IndustryRetail, Wholesale
Founded2005 (2005)
DefunctSeptember 30, 2023 (2023-09-30)
FateBankruptcy
Headquarters
Slave Island, Colombo-02
,
Sri Lanka
Number of locations
400+ (2019)
Area served
Sri Lanka
Key people
Pasanda Yapa
ProductsSupermarket
Hypermarket
Superstore
RevenueDecrease Rs. 5.3 billion (2022)
Negative increase Rs -6 billion (2022)
OwnerMinistry of Industry and Commerce
Number of employees
5,000+ (2020)

Nushad Perera was appointed as the chairman of Lanka Sathosa in January 2020.[2] As of 2019, the retail chain expanded its branch of network beyond 400.[3] Sathosa has also guaranteed to sell essential items at concessionary prices during tough times including the coronavirus pandemic in the country.[4] However it has also been widely criticised in recent years for continuous loss making and defaulting on payments to suppliers.[5]

Controversies

Johnston Fernando was arrested on 5 May 2015 in relation to the non-payment for goods worth more than 5 million rupees but was released on bail amounting to Rs. 25,000 and three sureties worth Rs. 2.5 million each. He is also being investigated on financial irregularities connected to Sathosa during his tenure as the Cooperatives and Internal Trade Minister.[6]

On 5 June 2019, the All Island Canteen Owners' Association Chairman (AICOA) complained that Rishad Bathiudeen abused the Consumer Affairs Authority (CAA) to mistreat Sinhalese businessmen and also distributed food commodities unfit for human consumption through Lanka Sathosa.[7]

References
  1. LBO (2017-05-26). "Sri Lanka to retain public ownership of Lanka Sathosa". Lanka Business Online. Retrieved 2020-03-24.
  2. "New Chairman appointed to Lanka Sathosa". Daily News. Retrieved 2020-03-24.
  3. "Sri Lanka : State-owned Lanka Sathosa retail network expands beyond 400 outlets". www.colombopage.com. Retrieved 2020-03-24.
  4. "Package of essential food items to be provided at concessionary rates". Sri Lanka News - Newsfirst. 2020-03-23. Retrieved 2020-03-24.
  5. "Lanka Sathosa retail outlets default dues of essential commodity suppliers". www.lankanewsweb.net. Retrieved 2020-03-24.
  6. "UPDATE: Johnston Fernando released on bail - Newsfirst". Sri Lanka News - Newsfirst | News1st | newsfirst.lk | Breaking. Retrieved 2020-03-24.
  7. "Committee on Sally, Hizbullah, Rishad: First complaint lodged against Rishad Bathiudeen". www.dailymirror.lk. Retrieved 2020-03-24.
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