- Lanka Sathosa has been underperforming over a period of time. The operational lapses and the shortcomings in the financial management are the main causes adduced for this difficult situation. Lanka Sathosa incurred a loss of around Rs.5.1 billion during the latter part of the year 2014, due to import of rice in large scale at high cost and selling them at a low price, and due to provision of essential food items at a low price. The government's prime attention has been focused towards the restructuring of Sathosa, taking into consideration the unhealthy financial difficulties currently encountered by Sathosa on one hand and on the other side the task performed by Sathosa, to control the price escalations of essential commodities, while competing with the private sector. The joint proposal made by Hon. Ravi Karunanayake, the Minister of Finance and Hon. Rishad Bathiudeen, the Minister of Industry and Commerce, to settle the loan balance of Rs. 9.9 billion due to state banks, which was obtained to import rice, through selling surplus stocks of rice found in Sathosa stores at the current market price, following the open tender procedure and to implement the proposals on restructuring of Sathosa through issuing a Letter of Comfort to a state bank, by the Treasury, to obtain a loan of Rs.4.0 billion, was approved by the Cabinet.