Sri Lanka's state LakSathosa shops lose Rs3.4bn in 2015, turnover down
Jun 21, 2016 08:43 AM GMT+0530 | 1 Comment(s)
ECONOMYNEXT - Sri Lanka's LakSathosa, a state-run retail network mired in corruption scandals and has lost 3.4 billion rupees in 2015, while revenues dropped, official data showed.
Revenues at LakSAthosa dropped from 30.4 billion rupees in 2014 to 28.9 billion rupees in 2016 while cost of sales rose to 28.4 billion rupees from 26.8 billion rupees.
Total expenditure rose to 32.5 billion rupees, according to data released by the Finance Ministry.
There was an 8.1 billion rupees loan unpaid over a controversial purchase of rice in 2014.
In 2015, the Finance Ministry said it will give 7.5 billion rupees to keep LakSathosa running, preventing it from ceasing operations.
LakSathosa had been exempt from Value Added Tax, depriving wholesale and retail trade taxes to the government while consuming taxes charged from other sectors.
In 2016, the new administration slapped a 15 percent value added tax on private healthcare.
Despite the losses, LakSathosa has opened 6 new outlets, taking the total to 309. There are plans to increase the outlets to 320 in 2016. (Colombo/May21/2016)