The Hon. Wasantha Samarasinghe - Minister of Trade, Commerce, Food Security and Co-operative Development

¶ 01 Mr. Chairman, I will respond to points raised, particularly by Hon. Mujibur Rahman, during the Committee Stage debate on our Ministry’s Head. Seventeen entities fall under us, including STC, CWE/Sathosa, Consumer Affairs Authority, IP Office, Department of Commerce, Cooperative institutions, Weights and Measures and Standards, the Lalith Athulathmudali Mahapola Fund, and more. Together with two State Ministers, our Secretary, Chairmen and Boards, we are working to change the tarnished image associated with these institutions.

¶ 02 Lak Sathosa, our retail arm, draws most attention and criticism. Some officers named by the Hon. Member are already under disciplinary inquiry — they were among those who previously managed Lak Sathosa. When we took over, one person was submitting six different tender applications — clear malpractice. Sathosa had losses of Rs. 22 billion with 448 outlets, of which 252 were loss-making. We are implementing a policy to rectify this.

¶ 03 Contrary to the claim that an outlet is being opened in an officer’s own area without basis, we plan to open 150 shops this year based on public advertisements and market surveys assessing viability. Loss-making outlets are being closed or relocated after surveys; no political or ministerial interference will be allowed.

¶ 04 Regarding staffing, advertisements have been placed to recruit 22 officers. Some have exploited low salaries to create alternative income streams, which is why Sathosa declined. From 2014 to now, about Rs. 350 million worth of inventory left warehouses and still hasn’t returned or been accounted for. Yet shortages are being deducted from 1,179 employees — which is unfair. Our aim is to restore Sathosa to deliver services and value to people.

¶ 05 On rice duty: the Rs. 65/kg tax was imposed on 18 May 2023 by the previous administration, before our Government took office in September 2024. Maintaining a tax on rice protects farmers and the farmgate price, while also balancing consumer interests — that is why we retained it.

¶ 06 Politicised recruitment surged before the presidential election: about 500 in the last year; 370 in 2023; 481 with the election month; and 336 in July just before nominations. Many were placed in Colombo and Matara linked to the then Chairman. We have not dismissed even one; instead, we will deploy them to the new and relocated outlets as we expand, and make Sathosa a consumer-friendly, viable retailer.

¶ 07 On prices, comparing March 2024 to March 2025 across 40 items, prices have decreased by about 20% overall at Sathosa: big onions from Rs. 400 to Rs. 185; Pakistani big onions from Rs. 395 to Rs. 185; brown sugar from Rs. 430 to Rs. 285; imported canned fish from Rs. 290 to Rs. 270; local canned fish from Rs. 475 to Rs. 380, etc. In the past three months, we rejected substandard supplies and blacklisted three suppliers; one was rejected eight times before blacklisting — quality controls are being enforced. Some positions are vacant because when asked to meet responsibilities, certain officers resigned; those unwilling to reform should go.

¶ 08 On STC: we have reduced the import price of ammonium nitrate from USD 1,145 per metric ton (procured earlier) to USD 681 via open tender. At 2,000 MT per year, that’s about USD 464 saved per MT — nearly USD 1 million saved annually. We are closing holes used for deals in earlier times, including infamous “smart boards.”

¶ 09 On the Mahapola Higher Education Scholarship Trust Fund: Mahapola supports around 70,000 university and higher education students, financed by the Development Lotteries Board, Treasury, and investment income. We have increased the scholarship by 50% from Rs. 5,000 to Rs. 7,500 this year — we would have increased more, but constraints exist.

¶ 10 We must also address SLIIT. In 1998–99, Cabinet approved establishing the Malabe campus on Mahapola land, with an eventual plan to bring it under University of Moratuwa’s purview and to evolve into a university. In 2015, under then Minister Gamini Jayawickrama Perera, a controversial meeting (even in the Chief Justice’s chambers) led to attempts to privatise/alienate SLIIT away from Mahapola. Chief Justice Sripavan later stated no such decision was made in that meeting. Nevertheless, a decision was made outside to hand it over.

¶ 11 Financial statements then showed SLIIT had retained earnings of about Rs. 1,069 million. Yet it was to be handed over for Rs. 408 million. A bank account at Bank of Ceylon was opened irregularly, naming the Minister’s private secretary as a signatory. Subsequently, two companies — National Wealth Corporation Limited and NatWealth Securities Limited — were used to invest funds; approximately Rs. 985 million was invested, only around Rs. 350 million returned; about Rs. 600 million remains unaccounted. In 2019, President Maithripala Sirisena brought a Cabinet Paper to give full ownership to SLIIT, allegedly to stave off audits; we question motivations. COPE tried to summon Mahapola officials; attendance was obstructed and the sitting collapsed. We have now appointed former Supreme Court Justice Vijith Malalgoda as Chairman of the Mahapola Trust to investigate and recover what is due.

¶ 12 We will continue exposing and correcting wrongdoing in the Cooperative Department, CWE, and across our institutions. Together with my two State Ministers, the Secretary, all staff and my office, we are committed to transforming this Ministry into one that prevents theft, punishes offenders, and provides facilities for domestic and international trade.