KPMG to restructure Lak Sathosa; Treasury pumps 7.5 billion to Sathosa

June, 24, 2015

Rs. 7.5 billion is to be obtained from the Treasury to re-launch the massive loss incurring Lak Sathosa and its restructuring has been entrusted to KPMG Sri Lanka, said Minister of Industry and Commerce Risad Badhiutheen.

He said today in Colombo that KPMG would restructure all sections of Lak Sathosa including its storage facilities, marketing etc to higher standards enabling it to compete with any other supermarkets in Sri Lanka.

He added that plans are afoot to increase the existing 305 Lak Sathosa branches by another 50 following this restructuring.

Minister Badhiutheen pointed out that Lak Sathosa owes some Rupees 03 billion to its suppliers and around another Rs. 10 billion to banks while adding that this institution cannot be salvaged without obtaining Rs. 7.5 billion from the Treasury.

Currently, Lak Sathosa has in stock rice worth some Rs. 08 billion and this could be sold and converted into cash, said the Minister. He added that however, there are around Rs. 01 billion worth of stocks that are not fit for sale.

The Treasury provides funds to loss making state ventures like these from the taxes collected from the people.

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