Lak Nipayum comes under the Industrial Development Board, and its Katubedda sales centre is the only facility available for the Sri Lankan craft industry to market their products.
Attempts to reach IDB chairman Mahinda Jinasena for a comment were unsuccessful, and a message left in his mobile phone has not been responded to so far.
Lak Nipayum previously had a sales centre at the World Trade Centre too.
Its sales centre at Katubedda has been closed down to pave the way for Hameedia, owned by Fouzul Hameed, to open a shop there, reports say.