President Anura Kumara Dissanayake yesterday appointed a Presidential Commission of Inquiry to investigate alleged irregularities in coal imports and electricity generation, amid concerns over possible financial losses to the State.

The President’s Office said the Commission would examine transactions from the inception of coal-based power generation in Sri Lanka up to April 16, 2026, focusing on operations linked to the CEB-affiliated Lanka Coal Company (Pvt) Ltd., its successors, and private suppliers.

The three-member body is chaired by Supreme Court Justice Gihan Kulatunga, with Court of Appeal Justice Adithya Patabendige and High Court Judge Sanjeewa Somaratne as members. Former Ministry Secretary P.V. Bandulasena has been appointed Secretary to the Commission.

Appointed under the Special Presidential Commissions of Inquiry Act No. 07 of 1978, as amended, the Commission has been mandated to scrutinise procurement procedures, supply chains, quality testing, and operational processes connected to coal imports and utilisation.

The Commission has been tasked with the following mandates:

• To determine whether irregularities or illegal acts occurred in the procurement process for coal imports and to assess any resulting financial loss to the government.

• To investigate whether substandard coal was imported during the relevant period and to examine the entire associated workflow, including procurement, supply, quality testing, operational, and utility processes.

• To ascertain whether electricity generation using imported coal reached the expected levels of efficiency and productivity.

• To investigate whether legal or financial irregularities or illegal acts occurred during the power generation process if substandard coal was indeed utilized.

• To examine whether there were any breaches of expressed terms or conditions in these processes and, if so, whether measures such as withholding payments or other compensatory actions were taken.

• To identify the political authorities, government officials, officers of Lanka Coal Company (Pvt) Ltd, suppliers, or their agents responsible for any such incidents and to recommend future action to be taken against them.

• To propose measures to prevent the recurrence of such alleged malpractices or illegal acts in the future and to ensure proper governance and integrity.

In addition to the above, the Commission will also report on any other alleged malpractices or illegal acts related to coal importation and electricity generation, and recommend preventive measures to address such issues.

Investigations have revealed that the 161-kilo heroin consignment, with a street value of over Rs. 4 billion, seized in the deep seas south of Sri Lanka, was transported to the country under a 50-million-rupee contract.

Authorities yesterday said that an advance payment of Rs. 3 million had, initially, been received for transporting the narcotics, with the remaining amount to be paid later.

The drug shipment had been handed over from an Iranian vessel, in deep waters south of Sri Lanka, and was being transported in a trawler, belonging to a fish trader from the Matara area, when it was intercepted by the Navy.

The individual, who had reportedly accepted the contract to bring the narcotics ashore, has gone missing, and extensive investigations are underway to trace and arrest him.

Four suspects involved in transporting the consignment from the deep sea towards the Matara coast aboard the trawler were taken into custody by the Navy.

Acting on intelligence, the Navy intercepted the vessel on Thursday (16). The heroin was found concealed in six large fish tanks in 161 one-kilo packets.

The vessel carrying the drugs was brought to the Dikkowita Harbour yesterday. Deputy Defence Minister Aruna Jayasekara also visited the site to inspect the seizure.

The source of the narcotics has not yet been identified.The arrested suspects and the seized drugs have been handed over to the Police Narcotics Bureau, with further investigations being conducted under the direction of DIG Ashoka Dharmasena.

 By Norman Palihawadane, Hemantha
Randunu and Chaminda Silva

The Colombo Magistrate’s Court yesterday ordered the release, on bail, of former Sri Lanka Rupavahini Corporation (SLRC) Chairman Sarath Kongahage and former Additional Director General Devapriya Abeysinghe, who had been in remand custody over a corruption allegation.

Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officials of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and counsel for the suspects.

The court directed that each suspect be released on two personal bail bonds of Rs. 1 million, and imposed an overseas travel ban.

The Magistrate also ordered that the case be recalled on September 8, with a progress report on investigations to be submitted on that date.

The Bribery Commission had arrested the two over allegations that six employees were recruited outside the approved cadre of the SLRC and attached to the personal staff of former Media Minister Keheliya Rambukwella, causing financial loss to the State broadcaster.