KPMG to restructure Lanka Sathosa

25 June 2015 03:18 am - 0 - {{hitsCtrl.values.hits}}

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The Colombo branch of the global consultancy firm KPMG has been tasked to restructure the state fast-moving consumer goods (FMCG) giant Lanka Sathosa, a media communiqué by the Industry and Commerce Ministry said.

“President Maithripala Sirisena and Prime Minister Ranil Wickramasinghe, after discussions with Finance Minister Ravi Karunanayake have decided to enlist the global consultancy firm KPMG to restructure it.

KPMG is expected to find ways to sustain Lanka Sathosa in a profitable manner while giving the best market prices to Lankan consumers,” Industry and Commerce Minister Rishad Bathiudeen, under whose purview Sathosa falls, said.

According to the minister, Lanka Sathosa owes Rs.10 billion to two banks and another Rs.3 billion to suppliers.

The media communiqué said KPMG has already advised the government on streamlining and regularising the Lanka Sathosa administration.

“The government will foot Rs.7.5 billion pending bills of Lanka Sathosa and the newly revived Lanka Sathosa will be relaunched coming July 7. This Rs.7.5 billion is an investment by the government to make it competitive in par with the private supermarket chains of Sri Lanka,” it said.

“Goods to the value of Rs.1 billion and rice to the value of Rs.8 billion — both unsaleable — are lying in Lanka Sathosa at this moment. Also, Rs.600 million over-spent to computerise 80 shops and 16 stores and we now learn that it could have been completed with only Rs.300 million,” Minister Bathiudeen said.

The media communiqué said Lanka Sathosa reported a monthly turnover of Rs.3.2 billion -- a record in its recent sales history. Lanka Sathosa sells goods through 305 outlets across and doesn’t charge value-added tax (VAT) from customers.

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KPMG to restructure Lanka Sathosa

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