The Hon. Wasantha Samarasinghe - Minister of Trade, Commerce, Food Security and Co-operative Development
Minister Wasantha Samarasinghe said the Government is already implementing policies related to diplomatic appointments, housing, MPs’ pensions, and food security, and has established a multi-ministry Food Security Committee to address shortages. He criticised past decisions to wind down Sathosa and the Co-operative Wholesale Establishment, citing major debts, losses, asset sales and disrupted distribution, and rejected the “Shakthi Sahal” model on the basis of audit findings showing losses and unpaid dues. He outlined plans to rebuild wholesale and co-operative distribution, form producer co-operatives, restart CWE facilities, purchase paddy at guaranteed prices, sell rice at controlled prices, provide fertilizer subsidies, address new demand from liquor and poultry-feed industries, and use storage capacity such as the Dambulla cool rooms to stabilise supply and consumer prices.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Hon. Deputy Speaker, along with this Motion, four Private Members’ Motions came today. Looking at them, it is clear they were prompted because we as a Government are already working on these areas. For example, the diplomatic service—we discussed it this morning. When past Governments came, defeated MPs were appointed as diplomats. It has been six months for our Government; we have not done that. We appoint suitable persons.
¶ 02 On housing for all, it is in our policy; we are working on it—identifying land, implementing UDA projects. On abolishing MPs’ pensions, the Hon. Minister answered in the morning and it is being implemented.
¶ 03 On food security, to the Hon. Harsha de Silva who mentioned “Shakthi Sahal,” I say our Government is implementing a major programme and has appointed a Food Security Committee co-chaired by Hon. Lal Kantha and myself with many Ministries participating, to take decisions to resolve shortages.
¶ 04 Let me say what we faced. Sathosa—the country’s primary wholesale-retail network—was shut down: staff sent away; assets sold; lorries sold as late as September 2024; debts everywhere. Did anyone discuss food security in the last five years? They planned to close the Co-operative Wholesale Establishment and the Polgolla facility. Now the Opposition gives the Government advice. We took office to rebuild the country and reverse such decisions.
¶ 05 When we took over, Sathosa had losses of Rs. 2.2 billion; Rs. 700 million owed to suppliers; Rs. 500 million OD at People’s Bank; 856 excess recruits since 2024; a ruined distribution network. A Cabinet paper had been approved to abolish Sathosa by September. Was there any debate here warning of the impact on food security? No.
¶ 06 Hon. Harsha de Silva proposed supporting millers. Regarding “Shakthi” in Polonnaruwa, an internal audit shows a loss of Rs. 800 million in that year; Rs. 392 million due from supplies to the Food Commissioner’s Department remain unpaid; money given to friends not returned. That did not help food security. There is an internal audit report—please examine it. It even lists names, including yours and that of Hon. T. B. Sarath, as recipients of rice; I am not accusing you of corruption—check the report.
¶ 07 [Interventions]
¶ 08 Hon. Deputy Speaker, to be clear: I did not say the Hon. Harsha de Silva owes money; I said the audit notes names as having received rice while the society made losses and dues remain. The “Shakthi” scheme across eight districts failed to deliver; Rs. 390 million remain outstanding. Do not propose it as a model for food security.
¶ 09 We have developed both food security and production plans. We will create producer co-operative societies—for banana, mango, onion, potato, etc.—and supply through the CWE. This year we will restart three CWE establishments at Kurunegala, Colombo, and another. We re-enter wholesale trade.
¶ 10 We offered to buy 300,000 MT of paddy at Rs. 120 per kg; farmers got even Rs. 125—good for them. We will sell Nadu at Rs. 220 per kg and Samba at Rs. 230 per kg to protect consumers. That is the Government’s duty.
¶ 11 On Yala, cultivation is underway; we provide Rs. 25,000 fertilizer subsidy per hectare for paddy fields and Rs. 15,000 for other crops without fertilizer application; because applying fertilizer adds Rs. 10,000 per hectare, we give extra. Other crops also get support. Some rice is being diverted to beer and hard liquor industries and poultry feed—about 300,000 MT—creating shortages. Our production covers national need, but these emerging industries add demand, so we must increase yields, not only acreage. Maha cultivates 750,000–800,000 ha; Yala is about 600,000 ha; annual paddy output is 4.5–4.8 million MT; thus a deficit arises. We will not allow shortages to inflate prices; we will intervene to protect consumers.
¶ 12 On Dambulla cool rooms started in 2019 and opened during PM Modi’s visit—there are 60 chambers with about 5,200 MT capacity. Current focus is on potatoes and onions with private sector, as vegetable storage-transport cold chain is lacking. We manage 18 Economic Centres; 14 active, 4 closed. We plan to reopen them and start three new cool rooms at Nambutthegama, Dambulla, and Keppetipola, including refrigerated transport with a Korean partner.
¶ 13 Thus, the Government is working beyond your proposals. In six months, Sathosa has been re-established: from losses to Rs. 78 million profit in March; CWE revived; co-operatives rebuilt; 1,000 producer co-ops planned; procurement of medicines discussed with ADB to protect the public; freeing processes from racketeers. International bidding timelines are brought down to 42 days to award and within three months to supply, ensuring no shortages.
¶ 14 We are changing much to ensure people receive food and services without shortages. The NPP Government is implementing a plan to provide food without scarcity.
¶ 15 Thank you.
Provenance
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- Hansard, Friday, 9 May 2025 ·No. 1748600585013314 ·English daily/uncorrected Hansard
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Cite as: The Hon. Wasantha Samarasinghe - Minister of Trade, Commerce, Food Security and Co-operative Development. 10th Parliament, Parliament of Sri Lanka. Hansard, 9 May 2025. No. 1748600585013314. Politick, https://staging.politick.io/lk/speeches/24769