State ownership of commercial enterprises in the time of pandemic
Daily FT|March 31, 2020
State ownership of commercial enterprises in the time of pandemic
Prof Rohan Samarajiva
State ownership of commercial enterprises in the time of pandemic

The latest claim is that we need State-owned retail shops because that’s the only way the people can be fed. Before that it was that we needed public-money haemorrhaging SriLankan Airlines because that’s the only way we could haul back students from China. even the most well-meaning people fall back on State ownership at the slightest excuse.

Giving Sathosa and Lak Sathosa a monopoly on food delivery during curfew is wrong in multiple ways. First, they will not have the capacity to supply 5.4 million households, however dedicated or efficient. If the market has been supplied by multiple retailers in normal times, it is unrealistic to expect one supplier with a small market share to be able to serve all, just because there is a curfew.

Second, people must have money in hand in order to buy groceries, even in standard packs determined by a Government functionary. If the private retailers are shut out of business, it follows that the people working for them and the people working for their suppliers will be out of work and therefore out of money. even if Sathosa were capable of bringing the standard food pack to 5.3 million doors, the whole thing will come to naught if the buyer has no money to buy it with. If one has no income, one cannot consume.

Third, the idea that people can be compelled to consume what the Government decides is wrong. That was how things were done in 1970-’77. But this is now. One hopes we have moved on.

This story is from the March 31, 2020 edition of Daily FT.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the March 31, 2020 edition of Daily FT.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM DAILY FTView All
Coronavirus And The Remote Working Revolution
Daily FT

Coronavirus And The Remote Working Revolution

Only a small spark is needed to light a great fire. A virus called COVID-19 originating from China was the spark that has started the remote working revolution. With a study in UK saying social distancing may need to last for up to 18 months, remote working will be the norm for over a year.

time-read
4 mins  |
April 02, 2020
Novel Coronavirus – The Message
Daily FT

Novel Coronavirus – The Message

Leading scientists have said that the COVID-19 outbreak is a "clear warning shot" to assess our current situation. Nature is sending us a message with the coronavirus pandemic The COVID-19 crisis may provide an oppurtunity for change, but we are not convinced it will be taken.

time-read
5 mins  |
April 02, 2020
Over Rs. 32M From Fonterra To Support Communities And Nation In Fight Against Covid-19
Daily FT

Over Rs. 32M From Fonterra To Support Communities And Nation In Fight Against Covid-19

Continuation of milk purchasing ensures safeguarding of local dairy farmer livelihoods.

time-read
2 mins  |
April 02, 2020
Why SL Companies Should Help Society In The Face Of The New Coronavirus Outbreak
Daily FT

Why SL Companies Should Help Society In The Face Of The New Coronavirus Outbreak

Why SL companies should help society in the face of the new coronavirus outbreak

time-read
3 mins  |
April 02, 2020
Back to the future, forward to the past
Daily FT

Back to the future, forward to the past

Back to the future, forward to the past

time-read
10+ mins  |
April 02, 2020
Are We Prepared For The Economic Doomsday Resulting From The Covid-19 Pandemic?
Daily FT

Are We Prepared For The Economic Doomsday Resulting From The Covid-19 Pandemic?

Are we prepared for the economic doomsday resulting from the COVID-19 pandemic?

time-read
8 mins  |
April 01, 2020
Emirates SkyCargo Calibrates Cargo Operations To Better Connect Global Markets
Daily FT

Emirates SkyCargo Calibrates Cargo Operations To Better Connect Global Markets

Emirates SkyCargo calibrates cargo operations to better connect global markets

time-read
3 mins  |
April 01, 2020
More ‘April Fools' You
Daily FT

More ‘April Fools' You

More ‘April Fools’ you

time-read
6 mins  |
April 01, 2020
Need For Rapid Expansion In Testing For Covid-19 In Sri Lanka
Daily FT

Need For Rapid Expansion In Testing For Covid-19 In Sri Lanka

Need for rapid expansion in testing for COVID-19 in Sri Lanka

time-read
4 mins  |
April 01, 2020
State ownership of commercial enterprises in the time of pandemic
Daily FT

State ownership of commercial enterprises in the time of pandemic

State ownership of commercial enterprises in the time of pandemic

time-read
4 mins  |
March 31, 2020