Help to revive LAKSATHOSA

In a significant development affecting the Sri Lankan retail market segments, Singapore has extended its support the revive LAKSATHOSA, Sri Lanka’s sole state owned retail chain -and the immediate offer of support comes in the wake of a Ministerial level request made on 7 October in Colombo. “We’ll do this for Sri Lanka-Singapore is pleased to support LAKSATHOSA!” said (HE) S Chandra Das (Non-Resident High Commissioner to Sri Lanka) on 7 October.

High Commissioner Chandra Das, the former Member of Parliament of Singapore from Chong Boon, was making a courtesy call on Minister of Industry and Commerce Rishad Bathiudeen in Colombo on 7 October.

“In 2014, Singapore has become a the fourth place in the list of Sri Lanka’s main importing countries representing 6.6% of Sri Lanka’s total import from the world. Products imported from Singapore are petroleum oils, milk & creams, fertilizers, iron, steel and plastics. Imports from Singapore at around $ 1.2 Billion” said Minister Bathiudeen and added: “LAKSATHOSA is Sri Lanka’s sole state owned retail chain with more than 310 outlets. It’s the primary goods price informer of Lankan market and functions under me. We are restructuring LAKSATHOSA and are still experiencing monthly losses. Prime Minister Ranil Wickremesinghe advised me to follow the Singaporean retail model to revive LAKSATHOSA. We would appreciate possible support from Singapore in this regard.”

“We are strong in healthcare, housing, education, logistics and urban planning” responded High Commissioner Chandra Das, the former Member of Parliament of Singapore, and added: “I recommend you to follow Singapore’s NTUC Fairprice Co-operative model for LAKSATHOSA. NTUC Fairprice is Singapore’s largest retailer with multiple retail formats. I see that SATHOSA too is basically a cooperative model. I was NTUC Chairman for 33 years therefore I can see that it’s a good model you can adopt. We have made NTUC Fairprice shops world-class. NTUC Fairprice competes on a “patronage rebate and a 10% lower price than comparable popular brands” model of retail, which brought it a revenue of $2.2 Billion in 2014. NTUC Fairprice belongs to workers and trade unions and NTUC profits are given back to Singaporeans who buy its shares. I know this business well and I notice that there is no central warehouse for LAKSATHOSA! You need to establish central logictics! Send a study team from LAKSATHOSA to Singapore with just one week’s advance notice to me as a start and I shall see to it that NTUC Fairprice training arranged for them. We’ll do this for Sri Lanka-Singapore is pleased to support LAKSATHOSA!”

“We warmly welcome offer by Singapore and Your Excellency and I shall instruct the officials to make the necessary arrangements in this” responded Minister Bathiudeen.

Since it was founded by the labour movement in 1973, NTUC Fairprice today sells more than 2000 house-brand products across 120 outlets in Singapore serving more than 400,000 shoppers daily.

LANKASATHOSA is a fully government owned company incorporated under Act No.17 of 1982.