COOPFED Signs Supply Agreements with Lanka Sugar and BCC Lanka to Stabilize Local Markets

The Sri Lanka Consumer Cooperative Societies Federation has entered into two major agreements to source and distribute locally-produced goods through its expanding network of cooperative shops, aiming to reduce prices and support domestic industries.

The Sri Lanka Consumer Cooperative Societies Federation (COOPFED) has formalized partnerships with Lanka Sugar Company and BCC Lanka Company through separate Memoranda of Understanding designed to increase the availability of locally-sourced products to consumers. Under the arrangements, Lanka Sugar will supply 1,000 tons of brown sugar monthly, while BCC Lanka will contribute 20,000 liters of bottled coconut oil alongside soap and related items. These products will reach customers through approximately 3,500 regional shops operated by a network of 75 consumer cooperatives.

COOPFED characterizes the initiative as a mechanism to eliminate intermediary layers in supply chains and maintain stable pricing across markets. The Federation plans to expand its retail presence to 10,000 shops by 2029 and is exploring potential collaboration with Indian cooperative organizations to source additional quality products for distribution.

Government officials emphasized the strategic importance of the cooperative sector in Sri Lanka's economic development. Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe noted that cooperative membership in developed economies such as the United States and Europe represents approximately one in five people. He indicated the government's commitment to establishing a comprehensive cooperative ecosystem and stated that the Ministries of Finance and Trade are collaborating to strengthen cooperative banking infrastructure to support small and medium-scale enterprises seeking market access.

The Ministry of Trade highlighted COOPFED's historical emphasis on sustainable practices and member welfare, noting that promoting local products while reducing market monopolies could provide economic relief to consumers and contribute to building more equitable markets.