Trade Ministry seeks closer collaboration with retailers, says Minister

Colombo, June 25 (Daily Mirror) - The Trade, Commerce, Food Security and Cooperative Development Ministry is looking forward to strengthening its collaboration with the Sri Lanka Retailers Association (SLRA), Minister Wasantha Samarasinghe said while addressing the association's 9th Annual General Meeting (AGM).

The AGM was held yesterday at the Hilton Residences in Colombo with the participation of leading figures from Sri Lanka’s retail sector. During the event, a new Board of Directors was appointed for the coming year. The SLRA brings together businesses from a wide range of sectors, including fast-moving consumer goods (FMCG), fashion, healthcare and e-commerce.

Addressing the gathering, the Minister highlighted the importance of the retail sector to the national economy, noting that it contributes more than 20 per cent of Sri Lanka’s Gross Domestic Product (GDP) and provides employment to nearly two million people.

He said that although around 65,000 businesses are estimated to be registered in the country, a significant number of retailers and distributors, ranging from small village shops to large business-to-consumer (B2C) enterprises, remain outside the formal registration system.

The Minister also raised concerns over businesses operating through online platforms without proper registration or tax compliance, saying this places legally compliant businesses at a disadvantage.

He noted that irregular online transactions had resulted in substantial outflows of foreign exchange in the past, with an estimated US$780 million leaving the country through such channels, underscoring the need for stronger regulation of online commerce.

“The benefits of formalising businesses are significant for both entrepreneurs and the country. The coming together of retailers representing diverse sectors such as textiles, garments, biscuits, tea and fisheries under one association is commendable. Encouraging all businesses to adopt a formal system will contribute to the country’s overall economic development,” the Minister said.

Minister Samarasinghe further said that the Ministry remains committed to safeguarding the interests of both retailers and consumers, while emphasising the important role of the SLRA in maintaining consumer trust and confidence in the marketplace.