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LCC chairman drops bombshell

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“We changed qualification criteria during the tender process”

Answering to an issue raised by MP Harsha de Silva – Chairman Public Finance committee and giving an interview to a media about countries biggest ever tender to procure 4.5 million metric tons of coal for a value of 1.5 billion USD , LCC Chairman has admitted that standing Cabinet appointed tender committee (SCAPC) changed the qualification criteria of the bidders, after shortlisting the qualified bidders and after the pre bid meeting on 28 th July. Tender process started on 21st July with Lanka coal shortlisting the eligible bidders and inviting them to bid for a two-year requirement of coal for Lanka coal company. Controversy is brewing over how a company which was not among the initial eligible bidders list became the successful bidder and won the bid finally. Black Sand Commodities of Dubai, claimed to be a sister company of a Russian company named Suek AG won the tender even though its name was not in the list of eligible bidders.

However Suek AG name was there in that list. According to LCC Chairman’s revelation, LCC previously had 25 registered suppliers but only 7 of them applied for re registration due to various reason and only three of them participated for the pre bid meeting. As per LCC chairman SCAPC did a change of qualification criteria of bidders, after the pre bid meeting on 28 th so as to accommodate joint ventures and sister companies. This is because it wanted more participants for the tender. As per him, previous to this amendment sister companies were not treated as eligible suppliers, unless they themselves met all the qualification criteria to be an eligible bidders. This change which has been introduced while the tender process is on by the SCAPC , chaired by R W R Pemesiri, former RDA chairman and secretary to the ministry of Highways , has raised serious question as to the validity and transparency of entire tender process pertaining to the biggest ever commercial transaction of the country.

It raises various questions for which now LCC and the said SCAPC have to answer, such as (1) Can the qualification criteria be changed during a tender process? (2) If it can be done, then what is the process as well as formalities and approvals for executing such a change and did LCC followed those? (3) Did LCC inform all other 25 previously registered suppliers about this change because it is claimed that this was not done only to facilitate one party but to attract more bidders for the tender? (4) If it was informed, when was it informed to the registered suppliers? (5) why is it that the LCC did not publish this change and kept it as a secret till various parties question it?

Industry sources claim that due to the magnitude of the transaction and controversies around Black Sand Commodities introduction to the bidding process, and specially due to the fact that Black Sand was the only bidder in the tender with a price proposal, the LCC must answer all above questions to the public ASAP prior to entering into any further agreements with Black Sand .



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Compensation payments and reconstruction activities related to the Ditwah relief measures must be expedited with special attention at the district level – PM

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Prime Minister Dr. Harini Amarasuriya emphasized that compensation payments and reconstruction activities related to the Ditwah relief measures must be expedited with special attention at the district level. She further stated that all necessary allocations have already been made to Provincial Councils and instructed that the progress of disaster damage assessments and reconstruction efforts be closely monitored at the provincial level.

The Prime Minister made these remarks at a discussion held on Tuesday  (21) at Temple Trees under her patronage, aimed at informing Chairpersons of District Coordination Committees and public representatives from disaster-affected districts, in order to accelerate the implementation of the “Rebuilding Sri Lanka” programme. The discussion focused on expediting disaster relief and compensation payments, as well as the swift restoration of infrastructure damaged by the disaster.

The Prime Minister emphasized that Rs. 500 billion has been allocated for damages caused by the Ditwah cyclone, and that all relevant development activities must be completed before the end of 2026. The Prime Minister also instructed officials to pay special attention to resolving issues at the local level that are causing delays in compensation payments.

Senior Additional Secretary to the President, G.M.R.D. Aponsu, stated that the estimated cost for reconstruction following the Ditwah cyclone is approximately USD 3.4 billion. Accordingly, funds have been allocated for compensation across several sectors including housing and social infrastructure, agriculture and livestock, fisheries, industry and livelihoods, and irrigation. He further noted that 99% of the Rs. 25,000 allowance has already been disbursed, while 95% of the Rs. 50,000 resettlement allowance has been paid. Compensation for fully and partially damaged houses is still ongoing, and 99% of temporary relief centres have been closed.

Additionally, attention was drawn to several other measures, including providing Rs. 25,000 to affected schoolchildren, paying Rs. 1 million as compensation for each deceased individual, compensation for children who lost one or both parents, support for persons with disabilities affected by the disaster, compensation for agricultural losses, and expediting resettlement of displaced families. Measures such as allocating land for new housing construction and accelerating the issuance of reports from the National Building Research Organization were also discussed.

Focus was also placed on the reconstruction of affected schools, hospitals, and daycare centres, improving the accuracy and speed of data collection at the local level, and accelerating infrastructure development.

The event was attended by Minister of Plantation and Community Infrastructure Samantha Vidyarathna,  Minister of Public Administration, Provincial Councils and Local Government Dr. Chandana Abayarathna,  Deputy Minister of Agriculture and Livestock Namal Karunaratne,  Deputy Minister of Trade, Commerce, Food Security and Cooperatives R.M. Jayawardena,  Deputy Minister of Education Dr. Madhura Senevirathna,  Members of Parliament,  Chairpersons of District Coordination Committees,  Chief of Staff to the President and Commissioner General of Essential Services Prabath Chandrakeerthi, Additional Secretary to the President Jayantha Bandara; and officials of the Prime Minister’s Office.

[Prime Minister’s Media Division]

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Parliament urged to probe questionable payment of USD 2.5 mn from Treasury

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… five senior officials suspended

President’s Counsel Maithri Gunaratne has urged the Parliament to intervene in an ongoing investigation conducted by the Treasury into the wrongful payment of USD 2.5 mn loan instalment to a third party instead of the country that gave the loan to the Government of Sri Lanka.

Gunaratne, in a letter addressed to Speaker Dr. Jagath Wickremaratne copied to leaders of all political parties represented in Parliament, General Secretaries of those political parties, Committee on Public Finance, Auditor General and National Audit Office, has stated the payments were made between December 2025 and January 31, 2026.

Lawyer Gunaratne took up the issue on behalf of civil society grouping ‘Free Lawyers’ after gathering information related to the alleged payments. Spokesman for ‘Free Lawyers’ Keerthi Tennakoon told The Island that they expected the Parliament to act swiftly and decisively. Pointing out that the ‘disappearance’ of USD 2.5 mn took place amidst the massive National Development Bank (NDB) fraud, amounting to Rs. 13.2 bn, Tennakoon emphasised the responsibility of the Parliament to take charge of the investigation.

According to Gunaratne’s letter, seen by The Island, following an international investigation carried out by a technical committee, two Treasury Directors, two Deputy Treasury Directors and a senior official responsible for IT had been interdicted.

As the relevant payments amounted to USD 2.5 mn, the process couldn’t have been completed without the involvement of the Deputy Secretary, Treasury and Treasury Secretary, Gunaratne stated.

According to him, the Central Bank had been responsible for loan payments until recently but the alleged irregularities happened after that task was brought under the Department of External Resources and Public Debt Management Office.

The Free Lawyers said that as the Secretary to the Treasury, Harshana Suriyapperuma, was also the Secretary to the Finance Ministry, the Parliament should intervene to establish a suitable mechanism to investigate this.

Former NPP National List lawmaker Harshana Suriyapperuma succeeded Mahinda Siriwardena in late June 2025.

Tennakoon said that they felt the need to bring the shocking development to the public domain as those who knew of the incident remained silent.

By Shamindra Ferdinando

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USD 2 mn bribe: CID ordered to arrest Shasheendra R, warrant issued against ex-SriLankan CEO’s wife

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Colombo Fort Magistrate Isuru Neththikumara has directed the Criminal Investigation Department (CID) to arrest former SriLankan Airlines board member Shasheendra Rajapaksa and produced him in court in connection with the ongoing probe into the Airbus deal during his uncle President Mahinda Rajapaksa’s second term.

The Magistrate sought an explanation from the CID regarding the delay in executing the arrest warrant in respect of Shasheendra Rajapaksa when the case was taken up yesterday (22).

Neththikumara issued a warrant on Priyanka Nayomali Wijenayake, the wife of former SriLankan Chief Executive Officer Kapila Chandrasena, over the investigations into the Airbus transaction.

The Chandrasenas have been accused of receiving US 2 mn bribe to facilitate the transaction.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) is also inquiring into the Airbus deal. The Magistrate further ordered that the case pending before the Court be called again on May 20.

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