The Ministry of Trade, Commerce, and Food Security stated that a comprehensive audit is underway into past irregularities and corruption within the Lanka Sathosa and cooperative institutions.

Speaking to The Daily Morning, Deputy Minister of Trade, Commerce, and Food Security, R.M. Jayawardana said that a large number of institutions under the ministry generate significant revenue, creating a high risk for fraud and malpractice. He noted that corruption has been confirmed in many of these bodies.

“Out of the large number of institutions under the ministry, the Sathosa and the cooperatives are key entities that directly serve the public. We initially decided to conduct a full audit of these two institutions, and based on the findings, stabilise and restructure them for proper functioning. However, it will take at least two years for such an audit to be completed. We can’t keep the institutions inactive during this period. Therefore, these institutions continue to operate while the audit is being carried out separately,” he added.

Lanka Sathosa is the State-owned largest retail network business in Sri Lanka with over 450 outlets islandwide and over 4,500 employees. It was established in 2005 with the aim of ensuring food security. Cooperative institutions function as community-based organisations that provide goods, services, and credit facilities, particularly in rural and semi-urban areas.