Home Sri Lanka Shutting 100 Sathosa outlets a move to benefit private retail giants, says SJB
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Shutting 100 Sathosa outlets a move to benefit private retail giants, says SJB

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Former Provincial Councillor Waruna Rajapaksha says the National People’s Power (NPP) Government is deliberately undermining Lanka Sathosa, alleging that the decision to close around 100 Sathosa outlets across the country could lead to the creation of a business monopoly dominated by private interests.

Rajapaksha claimed that the Government has already moved to close 130 branches, with 30 outlets already shut and another 100 scheduled for closure soon.

He pointed out that some of the branches already closed, including the Ja-Ela Sathosa which reportedly recorded Rs. 500,000 to Rs. 600,000 in daily sales, were profitable and not loss-making entities.

“This is not about losses or inefficiency; this is about clearing the path for private retail dominance,” Rajapaksha said, warning that the move would weaken the country’s state-owned retail network, which plays a vital role in providing affordable goods to low-income consumers.

He also drew attention to a recent statement by business magnate Dhammika Perera, who announced plans to enter the retail sector and open 100 new supermarkets—coinciding with the government’s decision to shut down Sathosa outlets.

Highlighting what he described as a “highly questionable sequence of events,” Rajapaksha noted that Perera had previously submitted a proposal to purchase Sathosa, suggesting possible coordination between business and political interests.

Rajapaksha further recalled that during a previous administration, Sathosa was granted 100 liquor licenses, many of which were operated through its branch network, underscoring the state entity’s role as a revenue-generating enterprise rather than a financial burden.

He warned that dismantling the Sathosa network would erode public retail access, empower monopolistic forces, and undermine the state’s ability to stabilise essential goods prices, particularly during times of economic hardship.

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