From Sri Lanka Mirror
The Sri Lanka national supermarket chain Sathosa has gone bankrupt, suppliers told srilanka.
They said Sathosa has not made any payments to them for the past two weeks and decided to stop supplies.
The main reason for Sathosa to go bankrupt is that they have been unable to settle loans obtained from the Bank of Ceylon and People's Bank for the import of rice.
Over the past period Sathosa had obtained a loan from the People's Bank for Rs.5 billion as well as another loan from the Bank of Ceylon for Rs. 1.8 billion making up a total of Rs.6.8 billion in loans.
Sathosa in return had sold rice to the tune of Rs. 4.5 billion and it is not known what happened to the revenue.
Sathosa has some 300 outlets island-wide raking an income of Rs.80 million a day with 50 percent of it from rice sales.
The bankruptcy has been put down to corruption and mismanagement during the pervious government wherein a kilo of rice was sold for Rs.10 less than what was paid for its import.
Sathosa was brought under the Ministry of Food Safety headed by Gamini Jayawickrema Perera but there has been a sinister move by Industries and Commerce Minister Rishad Badurdeen to usurp it.
Badurdeen is alleged to be promoting the interests of a rice mafia according to Sathosa insiders.
The former chairman of Sathosa, Eraj Fernando is said to have been a close buddy of Badurdeen.
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