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Lanka Sathosa Chairman says he was neither sacked nor was there a ‘rice scandal’

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by Suresh Perera

The purported “sacking” of the Lanka Sathosa Chairman over what was described as a “scandal” in the procurement of rice captured intense media attention, but Nushad Perera, who headed the country’s biggest retail chain, dismissed the claims as “bunkum”.

“I was neither sacked as Chairman nor was there a ‘rice deal’, as claimed”, he said last week.

He said that he resigned on December 31, 2020, to take up his new appointment as Chairman of the Sri Lanka Standards Institution (SLSI) as the President wanted him to build up the national standards body to broad-base benchmarking the country’s export sector.

As a marketing professional, Perera earlier served for two decades as a member of the senior management team of Dialog Group and was also the founding CEO of Dialog TV.

He was appointed Chairman of Lanka Sathosa and the affiliated CWE (Cooperative Wholesale Establishment) by the President on January 1, 2020.

 

“I opted to resign as CWE Chairman on November 30 to dedicate more time to Lanka Sathosa to keep the wheels turning to ensure a steady supply of consumer essentials through the retail chain’s 416 outlets especially at a time the country is grappling with a pandemic”, Perera explained.

“We have to be fully operational to face the challenge”, he underscored.

As Chairman of the two institutions, he had to also attend board meetings every two weeks, which made it difficult to cope with the workload.

He said that he didn’t accept a remuneration as the head of the CWE. At Lanka Sathosa, he was paid Rs. 100,000 per month but largely used his private vehicle.

Asked about the Lanka Sathosa Chairman’s exit, Trade Minister Bandula Gunawardena said there was nothing amiss as the heads of the SLSI and EDB (Export Development Board) were also replaced.

“The heads of three institutions under my Ministry were changed in keeping with national priorities”, he told The Sunday Island.

Asked about allegations of irregularities in rice imports on the Lanka Sathosa Chairman’s watch, the Minister said that such claims were baseless. “There was nothing of that sort – it’s a figment of imagination”.

“The Chairman alone cannot decide on procurements”, Perera stressed.

There is a six-member procurement committee, including the Chairman, Secretary to the Trade Ministry and a treasury representative, which decides on purchases. This is followed by another three-member technical committee which evaluates the quality of the commodities to be procured, he explained.

In the case of rice, purchases are made locally by the procurement committees on the basis of 750 metric tons, which works out to one week’s requirement, Perera outlined.

Asked how a Fellow of the Chartered Institute of Marketing (FCIM), who was named ‘CIM Marketer of the Year’ in 2001 and awarded the coveted ‘Global Brand Leadership Award’ at the Asia Brand Congress in 2007, could fit into a scientific body, he said the SLSI can be better marketed as a productive tool to the private sector.

“We need to take this national certification body to the private sector in a big way as the quality of all commodities including fruits and vegetables will have to be SLSI certified for the export market”, he said.

“There’s a lot of work to be done there after I assume duties on January 1, 2021”, Perera added.

To be appointed Sathosa Chairman is akin to being asked to sit on a smoking volcano, industry officials quipped.

Whatever the dispensation, there’s bound to be tremendous pressure from various ‘interest groups’ eager to make a quick buck, they said.

Under the former UNP regime, it was like a game of musical chairs with heads rolling so often that the question jocularly asked was ‘who would be this week’s chairman?’, they recalled.

There were a few Chairmen with integrity, the officials recounted, referring to renowned marketing expert, Dr. Rohantha Athukorala, who collected his laptop, flagged down a three-wheeler and pushed off home (leaving behind his official vehicle) when asked to do what was considered unethical during Minister Rishad Bathiudeen’s time.

It’s a case of old wine in new bottles, they laughed. “Jockeys may come and go but the old horses in the stables know how the cookie crumbles”.



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Advisory for severe lightning for the Western and Sabaragamuwa provinces and Galle and Matara districts

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Advisory for Severe Lightning Issued by the Natural Hazards Early Warning Centre at 12.15 p.m. 06 December 2025 valid for the period until 11.00 p.m. 06 December 2025.

The public are being cautioned that thundershowers accompanied with severe lightning are likely to occur at some places in the Western and Sabaragamuwa provinces and in Galle and Matara districts.

There may be temporary localized strong winds during thundershowers.

The General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.

ACTION REQUIRED:

The Department of Meteorology advises that people should:

 Seek shelter, preferably indoors and never under trees.

 Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.

 Avoid using wired telephones and connected electric appliances during thunderstorms.

 Avoid using open vehicles, such as bicycles, tractors and boats etc.

 Beware of fallen trees and power lines.

 For emergency assistance contact the local disaster management authorities.

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Government briefs Diplomatic Community on recovery progress

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A special briefing for the diplomatic community in Sri Lanka was held on 4 December at the Ministry of Foreign Affairs, Foreign Employment and Tourism, chaired by Prime Minister Dr. Harini Amarasuriya together with the Minister of Foreign Affairs, Foreign Employment and Tourism,  Vijitha Herath. Senior government officials, including representatives of the Disaster Management Centre (DMC) and the Sri Lanka Tourism Development Authority (SLTDA), also participated.

Opening the session, Prime Minister Dr. Harini Amarasuriya expressed her gratitude  to the diplomatic community for their immediate support and solidarity following the recent floods and landslides. She noted that Sri Lanka had endured one of the most severe disasters in recent years, but the resilience of the people and the coordinated efforts of government agencies had enabled a rapid response and significant progress in relief operations. She confirmed that not a single tourist has been reported harmed during the disaster and noted that the previously inaccessible areas are now reachable. Massive cleanup and decontamination operations are underway to ensure that lands and public spaces are safe for return, and communications have been restored in the affected areas.

The Prime Minister emphasized that relief, evacuation, and emergency assistance were carried out with the collective effort of the tri-forces, police, public officers, health workers, volunteers, and local authorities. She acknowledged the continuing challenges, including the restoration of infrastructure, resettlement needs, and long-term disaster-mitigation work, and welcomed the technical, humanitarian, and financial support offered by partner countries.

Maj. Gen. Sampath Kotuwegoda (Retd), Director General of the Disaster Management Centre, delivered a detailed presentation on the current status of the disaster, including the number of affected families, evacuation centres, damage assessments, and the ongoing coordination with international agencies for recovery planning. The cyclone affected almost the entire country, with 22 districts severely impacted. Some locations recorded up to 540 mm of rainfall and winds of up to 70 km/h, causing widespread infrastructure damage. Early assessments indicate that 2.3 million people were exposed to flooding, with 1.8 million people directly affected on the ground and 1.1 million hectares of land impacted. The assessment also identified 40,152 pregnant women among those affected, who have been prioritized for support. He also highlighted areas where further technical cooperation, such as early-warning systems, mapping capabilities, and climate-response technologies would be valuable.

Buddhika Hewawasam, Chairman of the Sri Lanka Tourism Development Authority, briefed the diplomatic community on the impact of the disaster on the tourism sector. He reassured attendees that major tourism zones remain operational, safety assessments are underway, and contingency measures have been activated to support visitors and protect the industry during the upcoming peak season. The Chairman of the Hotel Association of Sri Lanka Ashoka Hettigoda confirmed that the Coastal and resort hotels from Maravila to Passikudah are operating, with many reporting 60–65 percent occupancy; the hotels in Nuwara Eliya are partially operational. He made an appeal that the best assistance that the international community can give to Sri Lanka is the continued support provided through tourism.

Several diplomats conveyed their condolences to affected communities and reaffirmed their governments’ readiness to assist Sri Lanka in both immediate relief efforts and long-term rebuilding. They expressed appreciation for the government’s transparent engagement and the coordinated approach to managing the crisis.

Prime Minister thanked the diplomats for their continued cooperation and underscored the government’s commitment to ensuring an effective and inclusive recovery. She stressed that strengthening disaster preparedness, climate resilience, and institutional capacity will be central to Sri Lanka’s national development agenda moving forward. Deputy Minister of Foreign Affairs, Foreign Employment and Tourism,  Arun Hemachandra, Secretary to the Prime Minister, Pradeep Saputhanthri, and Secretary to the Ministry of Foreign Affairs, Ms. Aruni Ranaraja, also attended the meeting.

[Prime Minister’s Media Division]

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All parties have agreed to recruit Development Officers into the teaching service through a competitive examination – PM

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Addressing Parliament on Friday  (05), the Prime Minister stated that, in accordance with the Supreme Court decision, the recommendations issued by the Public Service Commission, and the Sri Lanka Teachers’ Service Minute, all parties have agreed to recruit teachers through a competitive examination. The Prime Minister further noted that during the second phase of the recruitment process, the Development Officers currently serving in schools will be given preference during the interviews.

Addressing further, the Prime Minister stated,

“In compliance with the final order of the Supreme Court and the provisions of the Sri Lanka Teachers’ Service Minute, the Development Officers will be given the opportunity to join the Sri Lanka Teachers’ Service.

It has been decided to revise the maximum age limit of 40 years, as specified in the examination notification for applicants, to 45 years for this instance only”.

The Prime Minister further stated that, in accordance with the Supreme Court decision, arrangements have been taken to revise the age limits for graduates employed in the public service and graduates not employed in the public service, and to conduct separate examinations accordingly, in order to recruit teachers to Grade 3. i (a) of the Teachers’ Service to fill the available vacancies.

[Prime Minister’s Media Division]

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