LANKASATHOSA REVIVED

KPMG to restructure LANKASATHOSA

• ‘Already advised us on admin streamlining’-Rishad
• Says re-launching a revived LANKASATOSA in July
• ‘Rs 7.5 Bn to revive’—Rishad
• 50 new outlets coming this year

The Colombo branch of the global consultancy firm KPMG has been tasked to restructure the state FMCG giant LANKASATHOSA, as announced on 24 June in Colombo. “HE the President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe, after discussions with the Finance Minister Ravi Karunanayake have decided to enlist the global consultancy firm KPMG to restructure it. KPMG is expected to find ways to sustain LANKASATHOSA in a profitable manner while giving the best market prices to Lankan consumers” announced Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 24 June in Colombo.

Minister Bathiudeen was addressing a special press briefing at the Finance Ministry premises, Colombo 1 on 24 June. Joining Minister Bathiudeen was Kiran Athapattu (Chairman-LANKASATHOSA).

“Rs 10 Bn is owed by LANKASATHOSA to two banks and another Rs 3 Bn to suppliers. LAKSATHOSA is the only national institution that informs the exact price of consumer goods to the Sri Lankan market, especially the rural areas. We don’t charge VAT from the public. LANKASATHOSA sells the goods through 305 outlets across the country” said Minister Bathiudeen and added: “HE the President Maithripala Sirisena’s government aims to add another 50 outlets to this network this year. HE the President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe, after discussions with the Finance Minister Ravi Karunanayake have decided to enlist the global consultancy firm KPMG to restructure it. KPMG is expected to find ways to sustain LANKASATHOSA in a profitable manner while giving the best market prices to Lankan consumers. As a start, KPMG already advised the government on streamlining and regularising LANKASATHOSA administration. The government will foot Rs 7.5 Bn pending bills of LANKASATHOSA and the newly revived LANKASATHOSA will be re-launched coming 7 July. This Rs 7.5 Bn is an investment by the government to make it competitive in par with private supermarket chains of Sri Lanka. Goods to the value of Rs 1 Bn and rice to the value of Rs 8 Bn both un-saleable, are lying in LANKASATHOSA at this moment. Also Rs 600 Mn over-spent to computerise 80 shops and 16 stores and we now learn that it could have been completed with only Rs 300 Mn. I thank both HE the President and Finance Minister for their great efforts to revive LANKASATHOSA.”

This April, LANKASATHOSA, the fully government owned company incorporated under Act No.17 of 1982, reported a monthly turnover of Rs 3.2 Bn-a record in its recent sales history.