The origin of cooperative movement dates back to 176 years (1844,) where a small group of laborers in England established a cooperative society in Rochdale. Their lives were severely affected by the economic decline during this period. As a result, this co-operative society was started in order to uplift social and economic standards of their lives. Even though Rochdale pioneers started their initiative through a retail store, their aim was to expand their movement to textile, housing, agricultural and industrial industry, delivery, education and drug rehabilitation.

Cooperative movement started to spread across the globe with the impact of the industrial revolution on the weak. International Cooperative Alliance was created in 1895 and it was responsible to define and to introduce the specialty of the alliance. Rochdale pioneers have included definition of cooperative movement, values and policies in the statement of identity in 1934,1966 and in the congress celebrating 100 years in 1955.

Cooperative movement can be used in economical, industrial and service sectors which are vital for the upliftment of living standards of the community. Decisions taken voluntarily by a group is much fair and common when compared with decisions taken by individuals. Cooperative movement is a mode of living and in addition, it makes unity as power. Selflessness will be trained along with selfishness. Moreover, it will teach how to solve problems together. The value of unifying will be enhances rather than dividing. Only the good will be focused and the bad will be neglected. Humanity is the power and not the money.

Legal framework for Sri Lankan cooperative society was established in 1911. Colonizers’ attempts to transform Sri Lankan economy from agricultural economy to plantation economy traumatized the simple life styles of Sri Lankan community and made them in debt. As result, cooperative society was created to offer loan and saving services and after 1921, rules and regulations were implemented to extend the movement to other sectors as well. In the past, cooperative movement was used as a weapon to uplift the living conditions of the people and to empower them. But today the responsible people do not understand the necessity and the power of cooperative movement to make a change in the society. The reason behind this situation is that the privileged rulers and the policy makers who had no use of cooperative process do not realize the value of cooperative movement as a sustainable way of raising living conditions of the community. Even though researches were carried out to check the contribution of cooperative society by sacrificing money and time through establishing cooperative commission, those reports and suggestions do not get the attention of the responsible people. Therefore, theses great and humane organizations lack the possibility for better performance. But, common people in the country get numerous advantages from cooperative society. This country does not even have measurements to check the contribution of cooperative society to economic and social development of the country.