By The Pulseline News Desk
Lanka Sathosa Ltd had accumulated losses of Rs.22 billion by December 2025, with more than half of its outlets currently operating at a loss, Trade, Commerce, Food Security and Cooperative Development Minister Wasantha Samarasinghe told Parliament yesterday (7).
Responding to a question raised by Opposition MP Ravi Karunanayake, Samarasinghe has said Sathosa was facing significant financial difficulties, including Rs.14 billion in outstanding payments to suppliers as of December 2025, while the value of stocks held by the company stood at just Rs.5.8 billion.
He has said Sathosa had 452 outlets in December 2025, of which 250 were operating at a loss. Following restructuring measures and the closure of several outlets, the number of outlets has now fallen to 423, with 212 still operating at a loss.
According to Samarasinghe, the location of many outlets was a key factor behind their poor performance, particularly those established away from major urban centres.
Despite the financial challenges, the Government plans to expand Sathosa’s retail network, with 25 new outlets scheduled to be opened during 2026.
Samarasinghe has said agreements had already been signed for seven of the proposed outlets, while agreements for another 11 were ready to be signed. A further 14 locations have also been identified and are currently under discussion.
The Government also plans to refurbish 100 existing Sathosa outlets as part of an effort to improve their appearance and operations. Samarasinghe has said the tender process for the refurbishment programme was already underway.
Losses recorded for six consecutive years
The Minister has said Sathosa had recorded losses in every year from 2020 to 2025.
The company had recorded a capital loss of Rs.1.387 billion in 2020, followed by Rs.840 million in 2021, Rs.35 million in 2022, Rs.695 million in 2023, Rs.776 million in 2024 and Rs.721 million in 2025.
The Government is also examining Sathosa’s procurement and supplier arrangements, with Samarasinghe raising concerns over the company’s position in the supply chain.
He has said suppliers often supplied other retailers before providing goods to Sathosa, leaving the state-owned retailer with whatever stock remained.
Samarasinghe has said the Government had blacklisted more than eight suppliers during the past three months and was taking further action over the issue.
The restructuring effort comes as the Government seeks to improve the financial performance of Sathosa while maintaining its role as a state-owned retail network intended to provide essential consumer goods to the public.
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