Government is planning to restructure its loss making food retailer endash Cooperative Wholesale Establish endash to return it to profitability in the next two years, for an eventual public listing.
CWE has accumulated Rs. 8.2 bn in losses during the past few years, arising from politically motivated pricing policies and low management efficiency.
Consumer Affairs and Trade Minister, Ravi Karunanayake told Lanka Business Online in an interview that the listing would be done only after turning CWE into a competitive retail outfit that can command a high price.
“Our strategy is not to dispose loss making assets at rock bottom prices. We will appoint a new board with top private sector talents, who are capable of turning around CWE”, he said.
The same strategy will be adopted for textile retailer endash Salusala, which has amassed a Rs. 2.6 bn loss and State Trading General Corporation, which has losses around Rs. 100 mn.
Presently, trading facilities from two state banks; Bank of Ceylon and Pe