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AG: Coal procurement full of irregularities

Published

2 days ago

2026/04/9

AG S. Jayarathne

The Auditor General has warned that delays in coal procurement and continued reliance on suppliers of questionable standards could disrupt the supply of electricity.

The special audit report on coal imports was presented to Parliament on Tuesday (07) by Bimal Ratnayake, Leader of the House, at the commencement of proceedings.

However, Opposition MPs complained to Speaker Dr Jagath Wickramaratne that copies of the report had not been distributed to Members of Parliament. Responding to the complaint, the Speaker said it was the responsibility of the Parliamentary Secretariat to ensure the report was provided to MPs.

The special audit, requested by the Committee on Public Enterprises (COPE), examined the coal procurement process of the Lanka Coal Company for the Lakvijaya Power Plant and purchases planned for the 2025/2026 season.

The audit revealed several irregularities in the tender process. It found that the laboratory issuing quality reports at the loading port for the controversial supplier Trident Company had its licence cancelled. The report also disclosed that at the time advertisements were published calling for tenders,the company had not completed its registration but was awarded the tender. In addition, three other suppliers who had not confirmed their registration were allowed to submit bids.

Coal shipments for the Lakvijaya Power Plant are tested at both loading and unloading ports. According to the audit, Mitra SK South Africa had been appointed to conduct testing at the loading port, but due to the absence of accreditation the task was assigned to PT Mitra SK Analisa Testama Samarinda, an Indonesian firm whose licence had been cancelled on December 29, 2025. Auditor General S. Jayarathne has noted that the audit could not confirm whether the licence had been renewed by March 31, 2026, and that all 12 shipment reports issued at the loading port lacked accreditation.

The report has further pointed to discrepancies between loading port laboratory reports and data recorded at the plant’s main control unit. Despite the availability of alternative verification methods, the Lanka Coal Company failed to use them to confirm the accuracy of the reports.

The audit also highlighted that no coal shipments were brought to Sri Lanka between November 13 and December 30, 2025, despite the need to secure maximum stocks during that period.

As a result of the shortage, an emergency procurement was carried out on March 18 this year, selecting Taranjot Resource Pvt Ltd. as the supplier. However, the Auditor General revealed that this company had failed within the previous 36 months to supply coal with the required calorific value of 5,900 or above to the Lakvijaya Power Plant.

The report warns that delays in coal imports and dependence on suppliers with questionable standards could adversely affect the continuous supply of electricity from the plant.

The National Audit Office of Sri Lanka has further estimated that the use of substandard coal has caused losses amounting to nearly Rs. 2.24 billion.

According to the report, losses incurred from individual shipments included more than Rs. 160 million from the first vessel (consignment No. 456), over Rs. 90 million from the second vessel (No. 457), more than Rs. 310 million from the third vessel (No. 458), and over Rs. 150 million from the fourth vessel (No. 459). Additional losses included nearly Rs. 180 million from the fifth vessel (No. 460), about Rs. 30 million from the sixth vessel (No. 461), over Rs. 240 million from the seventh vessel (No. 462), more than Rs. 390 million from the eighth vessel (No. 463) and over Rs. 390 million from the tenth vessel (No. 464).

The report has also noted that because the available coal stocks cannot generate electricity at the plant’s full capacity of 300 megawatts, additional power may have to be obtained from alternative sources. The estimated additional energy requirement for this purpose is 76,354,087 kilowatt-hours, the report has pointed out.

By Saman Indrajith

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PM on inspection tour of newly renovated Colombo Central Bus Stand

Published

13 hours ago

2026/04/10

Priyan

The Colombo Central Bus Stand, which has a history of over six decades and had remained without a proper maintenance for many years, has now been renovated under the current government’s development programme and vested to the public. Following that, the Prime Minister undertook an inspection tour of the newly renovated Colombo Central Bus Stand.

Originally constructed in 1964, the bus stand was refurbished with modern facilities to meet current needs and was officially reopened to the public on April 8. The primary objective of this initiative is to provide passengers with a higher-quality and more comfortable transportation service.

During the renovation process, special attention has been given to the comfort and safety of women, which was commended by the Prime Minister. In particular, a modern rest area designed to ensure privacy for nursing mothers travelling from distant areas received special praise.

The Prime Minister also reviewed the newly introduced passenger seat reservation system and information services established to assist commuters. In addition, the modern surveillance unit and other security measures installed within the premises to ensure passenger safety were also inspected.

During the visit, the Prime Minister engaged in conversations with passengers at the bus stand and inquired about their views on the newly renovated facilities and the quality of transport services.

It was emphasized that the government’s objective is to transform public transportation into a safe, technologically advanced service that can be used with convenience by all citizens.

(Prime Minister’s Media Division)

Latest News

Sun directly overhead Nagawilluwa, Galgamuwa, Sigiriya, Palugasdamana and Mankerni about 12:11 noon today (10)

Published

14 hours ago

2026/04/10

Priyan

On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from the 05th to 15th of April in this year.

The nearest areas of Sri Lanka over which the sun is overhead today (10th) are Nagawilluwa, Galgamuwa, Sigiriya, Palugasdamana and Mankerni about 12:11 noon.

News

Opposition tells Minister Kumara Jayakody to resign

Published

15 hours ago

2026/04/10

Thilina Walpola

Prof. Peiris

No-faith motion to be taken up today

Former Foreign Minister Prof. G. L. Peiris yesterday (9) said that President Anura Kumara Dissanayake should remove Energy Minister Kumara Jayakody unless the minister stepped down on his own.Prof. Peiris, addressing a press conference called by the Opposition, said that Jayakody couldn’t under any circumstance continue to serve as a minister after the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) moved the Colombo High Court against the government member over a previous financial scandal.

Pointing out that Minister Jayakody had been indicted of a corrupt deal struck during the yahapalana regime, Prof. Peiris said it was wrong for the NPP to retain him as a minister, claiming that the offence was not committed during his tenure as a Cabinet minister in the current government.

Prof. Peiris and several other Opposition members dealt with the No-Confidence Motion (NCM) against Jayakody that would be taken up today (10) with the academic calling the vote an acid test for the NPP. Having campaigned on an anti-corruption platform at presidential and parliamentary polls, the NPP couldn’t protect Jayakody though he was widely believed to be close to President Dissanayake.

As the Manager of the Procurement and Import Division of the Ceylon Fertilizer Company, Jayakody is alleged to have committed the offence of corruption, according to CIABOC.

Jayakody has been accused of causing a loss of Rs. 8,859,708 to the State by influencing and exploiting the procurement process.

Following the serving of indictments on 27 March, the judge ordered Jayakody’s release on two personal bail bonds of Rs. 1 million each. The court directed that the defendant’s fingerprints be obtained and a formal report be submitted. The case has been scheduled for a pre-trial conference on 6 May.

Prof. Peiris stressed that the CIABOC action against Jayakody is central to the NCM primarily moved over the irregularities ridden coal procurement process launched in 2025 that caused severe disruption to the power generation. Responding to The Island query after the media briefing, Prof Peiris expressed surprise that the JVP/NPP accommodated a person under investigation by the CIABOC. Having taken an utterly irresponsible decision, the JVP/NPP were now playing down the developing issue, prof. Peiris said.

The entire government parliamentary group faced the prospect of having its image tarnished by defending Jayakody, the former lawmaker said.

Prof. Peiris said that they intended to build a campaign around the issues involving the energy minister to expose the government. With yet another electricity tariff hike in the offing due to the growing demand for thermal generation as a result of coal-fired Lakvijaya power plant’s failure to meet the requirement[RA1] , the energy minister and ministry’s performances have to be examined, Prof. Peiris said.The timely release of the Auditor General’s report on controversial coal procurement should compel the government to decide on the energy minister’s fate or be prepared to face the fallout.

By Shamindra Ferdinando