Hon. Wijesiri Basnayake

¶ 01 Mr. Chairman, thank you for the opportunity to speak in the Committee Stage Debate on the Heads of Expenditure of the Ministry of Trade, Commerce, Food Security and Cooperative Development in the 2025 Appropriation.

¶ 02 This Ministry is vital as it addresses many basic needs of the people. Under it, there are about 15 institutions. I will focus briefly on those related to cooperatives.

¶ 03 What is a cooperative? The International Cooperative Alliance defines it as a democratically controlled enterprise formed voluntarily to meet members’ economic, social, and cultural needs. In short: of the people, by the people, for the people. In Sri Lanka, however, the image that comes to mind is a place associated with theft, neglect, and decay. Globally, cooperative enterprises are very different: through cooperatives, we can meet all human needs.

¶ 04 Abraham Maslow’s hierarchy of needs—physiological, safety, social, esteem, and self-actualization—can all be addressed through a strong cooperative system. From womb to tomb, cooperatives can serve people, hence “multipurpose.” In Sri Lanka, there are diverse cooperatives; in the multipurpose services segment, there are 68 networks, with 309 active societies and roughly 2.6 million members. Around 22,000 people are employed, with 6,772 business units and 788 vehicles. There are 914 Mini Co-op City outlets and about 32 Mega Co-op City outlets. It is a massive organization, with many strategic locations in urban centers.

¶ 05 However, many cooperatives are loss-making. Why? Because they are run by elected chairmen and boards lacking visionary leadership and professional competence. Due to poor leadership and management, the movement has declined. We need turnaround strategies, and the Department of Cooperative Development, the Cooperative Employees Commission, and the NICD at Polgolla have a major responsibility.

¶ 06 While our cooperatives suffer, international cooperatives thrive. India’s Amul, started in 1946 by Dr. Verghese Kurien with the White Revolution, transformed India into the world’s largest milk producer. Amul is owned by farmers, with 3.6 million members. New Zealand’s Fonterra is also a cooperative, owned by dairy farmers, contributing over 30% to the global dairy trade. Why are our cooperatives falling while others rise? Because of corruption: elected leaders quickly become millionaires and cling to office.

¶ 07 For example, the Thambuttegama Cooperative’s fuel station is no longer theirs—stolen. In the Colombo District, the Sri Jayawardenepura Cooperative’s 39.32 perches in Rajagiriya (Sapumal area) were taken and a high-rise built—again, stolen. This is the tragedy of our cooperative sector.

¶ 08 We must recover from this. The cooperative movement can give a huge boost to a production-based economy. The Ministry, Department of Cooperative Development, NICD Polgolla, and the Cooperative Employees Commission must together prepare a strategic plan to rebuild the sector. I invite Opposition MPs as well to join us in strengthening cooperatives and building a prosperous, clean nation that can become a leading country in Asia. Thank you.