Although Lanka Sathosa had paid to the State Chamber of Commerce for the rice stocks, it has been revealed that the stocks had not reached its warehouses.
Lanka Sathosa sources say that the loss is close to 60 million rupees.
It is said that missing stocks were directed to a rice mill in Horowpathana where they have been repackaged and released to the market as local rice at premium prices.
According to reports, two managers at the State Chamber of Commerce in charge of the rice import project and a warehouse manager of the Lanka Sathosa had been involved in the fraud.