The government has revoked a previous Cabinet decision to dissolve SATHOSA (Co-operative Wholesale Establishment) and has granted approval to resume its business operations. This reversal comes amidst allegations of tender irregularities favoring a company linked to a presidential advisor.
The initial decision to close Sathosa was made in September 2024, aiming to dissolve the institution by repealing the Cooperative Wholesale Establishment Act of 1949. However, the government has now justified the reinstatement, citing Sathosa’s potential role in ensuring fair prices and market competitiveness under its ‘Prosperous Nation – Beautiful Life’ policy framework.
Minister of Trade, Commerce, Food Security, and Cooperative Development, Vasantha Samarasinghe, presented the proposal for Sathosa’s revival, which received Cabinet approval.
Meanwhile, Samagi Jana Balawegaya MP Mujibur Rahman has accused the government of awarding a tender to Ernst & Young, a company associated with Duminda Hulangamuwa, an advisor to President Anura Kumara Dissanayake. Rahman alleges that the initial tender process for a systems audit at Lanka Sathosa was canceled due to “misplaced” documents, and a re-tender was awarded to Ernst & Young.
Minister Samarasinghe has denied any wrongdoing, stating that the company was awarded the tender following due process.