Reform roadmap for cooperative system

Sri Lanka launched the first-ever reform initiative for its cooperative sector in more than 100 years, the Industry and Commerce Ministry said in a statement.  

“Cooperative Development 2020 Vision is the roadmap that we are introducing to modernise this sector,” said Industry and Commerce Minister Rishad Bathiudeen.

Minister Bathiudeen was addressing the ministry’s 95th International Cooperative Day event held in Kurunegala and led by President Maithripala Sirisena, a onetime employee in a cooperative in his youth. 

“The cooperative system is our third economic force. It was introduced to Sri Lanka in 1906. Since then it continued to follow the same traditional methods and even today there is no change in the way it does its business.”

 The cooperative sector, considered the third economic force in Sri Lanka, has a strong presence in rural areas of the country. There are almost 14,454 cooperatives employing 46,000 people in various productions services, SMEs, women’s development, rural banking, insurance and farming activities in Sri Lanka. Its asset base stands at $ 1.8 billion with another $ 1 billion in savings. The membership in the SL coop system exceeds five million, a considerable number of them being women.

President Sirisena praised the Cooperative Development 2020 Vision given to him by Minister Bathiudeen. “I had a look at Minister Bathiudeen’s Cooperatives Development 2020 Vision and I have to say he has carried out my requests on coop reforms very well. Our cooperative system is also facing the burden of taxes. I will speak with Minister Bathiudeen and get a Cabinet paper moved to remove some taxes on cooperatives so that they become more viable. I shall do my best for our cooperative sector to relieve it of its issues.” 

The comprehensive Cooperative Development 2020, the first major reforms to be introduced in the 111 years since the introduction of the system to the country, envisions modernising this sector with the introduction of modern business practices, strengthening subsectors, introducing new information technology and connecting more youth to the network.