Features
Sarath Silva googly gives CBK year less than expected, Helping Hambantota
Trips to Washington for IMF and World Bank meetings, bargain book sales
We were in the beginning of the year 2005 and the next Presidential election was coming ever closer. CBK had taken Chief Justice Sarath Silva’s advice and had taken oaths as President for the second time soon after the assassination attempt in 2001 in the belief that the balance period of her first term would be added to the tail end of her current tenure. Imagine her consternation when it was held that her second term ended exactly five years after her second oath taking.
It was a double blow in that her faith in Sarath Silva was shattered and her plans to undertake a year of reforms and groom a successor were now stymied. Sarath’s decision was tailor-made for his friend Mahinda Rajapaksa for if CBK had another year she may not have selected him to be the standard bearer of the PA in the forthcoming Presidential election. At this stage with Lakshman Kadirgamar’s demise, the odds on favourite was Anura Bandaranaike. But he was getting deeper into the cups and was not as proactive as his erstwhile protege MR.
The MR camp was busy demoralizing Anura. At the SLFP convention held in Kurunegala there was a well orchestrated hooting when Anura arrived on stage. Day by day pressure was brought on CBK to turn to MR and she was not helped by Anura’s reputation for drinking and indolence. No one knew that he had developed a cancer in his liver which Tissa Vitarana – a superb doctor, told me was caused by excessive drinking. The UNP which worked hand in glove with Mahinda to embarrass CBK now discovered that their favourite SLFPer (MR) whom they had nurtured could become a formidable candidate.
They filed a case through Kabir Hashim challenging Mahinda’s conduct in setting up “Helping Hambantota”, as a fund to collect money for the rehabilitation, presumably, as its name indicates, of Hambantota District. If found guilty he could have been imprisoned for four years as Sarath Silva proclaimed in retirement many years later. The “Helping Hambantota” fund created a dilemma for the Finance Ministry. Only the Treasury is entitled to set up special funds and when I was questioned about it in Parliament I had to frankly admit that “Helping Hambantota” was not properly constituted.
However MR’s Secretary Lalith Weeratunga had managed to get a letter from the Treasury stating that they were aware of this fund which proved to be a sufficient handle to save Mahinda. Kabir Hashim not only lost his case but was reprimanded by the CJ. He narrowly escaped being thrown in jail instead of MR.
Alternate Governor
As a prelude to a budgetary exercise the Ministry of Finance undertakes many discussions about foreign financial contributions which help in formulating our “foreign exchange budget”. All such inflows are depicted in the national budget under the relevant subheads. These discussions are held with both multilateral and bilateral donors. Among multilateral donors we transact business mainly with the IMF, the World Bank group and the ADB. In all these cases the Minister of Finance is an Alternate Governor who attends the annual sessions of these institutions.
The IMF-World Bank meetings are held twice a year as spring and autumn sessions and ADB meetings are held once a year. All these institutions have a practice of having their meetings in Washington and Manila as the case may be. However on every third year meetings are held in a member state. I was the Alternate Governor of these institutions from 2004 to 2015 which adds up to a considerable amount of travelling to all parts of the world. While innumerable ‘pilgrimages’ were made to Washington and Manila during this time, I also travelled to Ankara, Nagoya, Tokyo, Astana, Hyderabad, Singapore, Bali, Shanghai, and Bangkok for these multilateral sessions. Since most Finance Ministers of the world tend to attend these meetings, we also had fruitful meetings with many of them on bilateral issues. It was a good opportunity to review existing projects as well as discuss new requests. Many Ministers were accompanied by heads of their organizations that funded development efforts in the Third World. For instance the heads of the Saudi Fund, Norad, CIDA, UNDP, the Gulf Fund and many others who were funding Sri Lankan projects were present for a review of our joint efforts.
The agenda for IMF meetings was not too complicated. It began with the address of the heads of the IMF and World Bank followed by an overview of the global/regional economy and projections for the future by its Chief Economist. During my time, the post of Chief Economist was held by Raghuram Rajan, the distinguished scholar of Indian origin from the Economics Department of the University of Chicago. He was the first economist to predict the impending economic crisis of the late 20th century beginning with the failing housing market in the US.
He later became the Governor of the Reserve Bank of India at the invitation of Finance Minister Chidambaram. However having fallen out with the Modi government he went back to Chicago. We then had a meeting of the G40 which was a grouping of the developing countries. Here the concerns of the “receivers of aid” were articulated in the presence of the MD of the IMF and the President of the WB. At these meetings I was invariably asked to intervene by our group. Accordingly I characterized our plight as those of “innocent bystanders” whose economies were hit by the financial crisis which enveloped the developed world.
It must be remembered that this was the time when the global financial architecture was shaken to its roots following the American financial debacle. It was aptly described as a system “too big to fail”. The G40 meeting was followed by a luncheon hosted by the Indian Finance Minister for the South Asia group. Our geographical group comprised India, Bangladesh, Nepal, Bhutan and Sri Lanka. In my time our hosts were P. Chidambaram and Pranab Mukherjee who were the relevant Finance Ministers of India.
Afterwards many bilateral meetings were held on the sidelines of the main meetings. We invariably had meetings with India, the Gulf States, US, Japan, China and the Nordic countries where we could discuss progress in the projects underway funded by those countries as well as future funding for projects which had been submitted by the External Resources Division of the Finance Ministry. The grand finale was the plenary session where member states could make their interventions. Usually only eight minutes were allocated for each country.
The meeting ended with the formal responses of the heads of the IMF and WB to the concerns raised by delegates and a “family photograph”. I also had short “one to one” meetings with the MD of the IMF and the head of the World Bank. When De Rato the MD of IMF retired I called on him and presented him with a few packages of Ceylon tea and thanked him for his support extended to us particularly during the Tsunami. He remarked ruefully that I was the only representative of the developing countries who came to bid him farewell.
Country meetings
Perhaps the most important of our meetings were the “country meetings” when the senior officials of the IMF and WB reviewed the status of our economy as well as country projects spanning all aspects of the aid programme. I began the meeting with an introduction which reviewed the economy of Sri Lanka since our previous meeting. This was followed by a statement by the Governor of our Central Bank Nivard Cabral or his representative. One of the senior most officials of the IMF – Dr Kato a Japanese national, would then respond and turn over the discussion to the divisional leaders who would take up specific issues in project implementation. For example the Director overlooking education projects would review their activities in Sri Lanka while the Director in charge of budgetary reform would present his divisions analysis of our current budget and their recommendations for the forthcoming one.
It was an interesting high level discussion since we had come to know each other over a period of time and could speak frankly about our concerns. At the end of these discussions I would host the participants for a lunch usually at a top class Chinese restaurant close to the IMF building. Since we had an officer of the Central Bank attached to the IMF in Washington he took care of all these arrangements. He took care to invite a few other senior officials attached to the Maaging Director’s secretariat for that meal.
These and other public relations operations, including arranging a tour of our tourist hotspots when they were on mission in Sri Lanka, helped in smoothing our conversations and we were able to create a sense of goodwill which was very useful when it came to gaining the assent of the governing board which depended heavily on staff recommendations.
IMF ideology
A constant refrain about the IMF is that it follows a neo-liberal economic agenda. Since the West led by the US are the main shareholders of the IMF its Board usually toes a line which is favourable to Western interests. These interests include the regulation of the banking system and careful management of the global currency and exchange system which depended on US money supply and interest rates. Since the US dollar was the reserve currency of the world it held all the cards in the global financial game.
Part of our discussions were with the US Secretary to the Treasury and the Chairman of the Federal Reserve. When I first participated in IMF meetings the head of the Fed was Alan Greenspan [1987-2006] the legendary economist who dominated US economic policy for decades. He was followed by Ben Bernanke and Janet Yellen. They all participated in IMF meetings and Yellen in particular had special meetings with Finance Ministers to warn them of the possible consequences for their economies due to changes in the monetary policies of the US. For instance when the US raises interest rates money invested in developing countries tend to flow back to the US. When the US Fed reduces its interest rates there is a reverse flow to the poorer economies which offer higher rates.
Discussion with IMF officials in Colombo
When it comes to developing countries facing economic crises the IMF helps “by offering loans, technical assistance and surveillance of economic policies”. Loans are conditional on the following of a mutually agreed recovery programme for which funds are released in tranches after staff reviews which are endorsed by the Governing Board of the IMF. Sri Lanka has had 16 such programmes but none of them have been completed because the Sri Lankan side has aborted them mid stream due to political considerations.
In countries which go to varying types of polls almost every year, leaders find it difficult to accept the bitter economic recommendations of the IMF and the Central Bank. This is particularly true of Rajapaksa regimes because an electoral loss meant that “their occupation is gone” to use Shakespearean language. Subsidies however deleterious to growth is sacrosanct in this country and governments of the day prefer to pass on the hard decisions to future generations even if it means the breaking of its understandings with the IMF.
However there are some critics who challenge the model of growth adopted by the IMF. ‘Ihey find an alternative in closed economies where consumption is curtailed through a regime of restrictions and production is more for a domestic market. The economic models of such closed economies (also called “fortress economies”) have failed in the last 50 years and with the fall of the Communist blocs and the new trade policies of China, such an alternative is now hardly credible as a viable economic solution. Russia, China and Vietnam are keen members of the IMF and they jealously guard their interests in a globalized economy.
Donor meetings
In 1978 Ronnie de Mel established the practice of holding an annual meeting with our donor community as a prelude to preparing the budget. Since the new administration under JRJ was popular with western countries there was no dearth of supporters from among non-Communist countries. This was best seen in the foreign financing of the giant Mahaweli scheme. A large amount of money was provided as grants while many of the loans were given on concessionary terms.
The funding of this “Jumbo”project – both bilateral and multilateral – was so extensive that it is unlikely that such funding would be repeated in the future. Germany, Canada, Sweden and the UK financed the building of dams in Randenigala, Rantembe, Kotmale and Victoria. Japan which wanted to join the bandwagon but could not be accommodated under Mahaweli, opted to donate a whole new TV system and a 1001 bed hospital in Jayawardenepura as outright grants. When Scandinavian countries and Canada drew up “short lists”of developing countries earmarked for foreign funding Sri Lanka ranked among the top three.
Donor meetings were held because it was difficult to manage foreign funding on a one to one basis. It was more feasible to bring our donors together with the External Resources Division of the Treasury for a three-day long meeting when project performance could be reviewed and new funds pledged for the coming year and sometimes even beyond on a three year cycle. The World Bank agreed to host such a meeting and its European office in Paris was selected as the venue.
Thus from 1978 Treasury officials and the Minister of Finance wended their way to Paris for this much anticipated donor conference. Pledges were wrapped up and the meeting concluded with a grand dinner at the Ritz hosted by Ronnie in which all heads of relevant financial institutions participated. This model was so successful that the World Bank prescribed such meetings for many countries which were on the “beggars list” for extensive foreign support. This procedure worked well under the JR regime but was reduced to a shambles by Premadasa who preferred private foreign investment particularly for his garment manufacturing enterprises.
It must be stated here that this strategy did not entail obtaining a range of loans which would come home to roost later. Funding was provided by private investors. Premadasa’s favourite official in the Treasury – the super efficient Civil Servant Paskaralingam and his handpicked Treasury officials managed to steer the foreign exchange budget to success as well as start many urban infrastructure projects which began to alter the Colombo skyline. But the raging war – LTTE in the North and East and the JVP in the South – put paid to Premadasa’s dream of making Sri Lanka economically resurgent like Singapore, South Korea and Germany – countries that he admired. He was no great fan, unlike JRJ, of the USA and UK.
When CBK took over the reins in 1994 she had to confront an ongoing northern war. Premadasa had by then physically eliminated the JVP and its top leadership. All CBK’s efforts to quickly solve the “national question” became a tragic failure which blighted her regime. It particularly affected her management of the economy which declined over time to zero growth. As Minister of Finance I managed to reverse this trend and achieve a five percent plus growth and a significant increase in per capita income.
Her presence at the Paris donor meetings enabled western countries and Japan to complain to her about the escalating war in the North and East. To add to the countries security concerns several senior ministers Kadirgamar, CV Goonaratne and Jeyaraj Fernandopulle were assassinated and she herself had a narrow shave – all highlighting the stresses in a war torn country which were noted by the donors. Her strategy of taking her deputies GL Peiris and SB Dissanayake to Paris backfired in that they were exposed to the details of our economic debacle and the persisting concerns of western donors.
As SB told the media later he and GL realized at these meetings that CBK could not meet the challenge of managing the economy and therefore decided to cross over to Ranil and the UNP. To add to the misery the Tsunami of 2004 derailed all her plans and called for a concerted effort to put our foreign funding on a sounder footing.
We in the Finance Ministry decided to take the bold step of holding the Development Forum in Kandy. Earlier an attempt was made by Japan to host the Forum in Tokyo. It was decided then to move the venue from Paris to Tokyo largely due to the initiative of Japan’s roving ambassador Akashi who was well known for formulating his “Akashi Doctrine”. According to this policy Japan pledged substantial funds for development if the countries’ domestic conflicts were ended. It had been tested and tried successfully in Cambodia. This approach had been welcomed by Ranil’s regime.
But the LTTE had pulled out at the last minute and the Tokyo meeting had to be canceled. Our decision to shift to Kandy was welcomed by the donor community. We invited Bill Clinton for this meeting and he responded positively by sending a recorded message through his “alter ego” Erskine Bowles, the son of Chester Bowles – the former US ambassador to India, who attended on his behalf. The Deputy Managing Director of the IMF Praful Patel and deputy MD of the ADB Li Jin (who later headed the China backed Asian Infrastructure Development Bank) also attended together with senior officials of the World Bank.
The Ceylon Observer newspaper reported “More than 150 representatives from over 50 countries and international donor agencies will participate at this meeting. According to sources, the Government aims to cut down the budget deficit for 2005 with the assistance from donor countries and agencies. Sri Lanka maintains a 5.6 percent economic growth rate even in the midst of its largest ever disaster”.
After the ensuing discussions in which attention was drawn to the need to increase funding for Tsunami relief and strengthening the peace process, more specifically P-TOMS (Post-Tsunami Opertionl Mnsgement Structure), the international community pledged three billion US dollars for reconciliation and reconstruction activity in Sri Lanka. The holding of the development Forum in Sri Lanka was welcomed by the donors and it was continued the next year in Galle. However with the change of management a few years later it was abandoned by MR and successive administrations. Those Finance Ministers preferred to have bilateral discussions by themselves with donors and their contractors which led to many accusations of corruption which became more strident by the day. Instead of donor meetings emphasis was placed by MR and Basil Rajapaksa on “unsolicited proposals”.
Sunday off
Sunday in Washington was a free day which we used to visit the bookshops in Washington and go to the theatre. There was a bargain bookshop near Dupont Circle close to our hotel which was patronized by our delegation. It had many rare books donated to it by publishers since the sales collection went to charities. It was manned by students from top universities who were only too happy to engage in discussions about new books. Another memorable event was the closing down sale of the famous Borders bookshop since the company had gone bankrupt.
All books in the shop were sold at one dollar apiece. Borders bookshops in downtown Washington and Georgetown were stormed by “egg heads” who bought up not only books at a dollar each but even the shelves and safes which were on offer in the fire sale. I also visited my Peradeniya friend and colleague Professor HL Seneviratne and his family in Charlottesville, Virginia. Once I visited Stanley Tambiah my old teacher at Peradeniya. He had retired from teaching at Harvard and was installed in an old folks home by his ungrateful family. That was my last encounter with our much loved teacher from the fifties since Tambiah died a few months later.
The practice then was to attach a senior Central Bank officer to the IMF for a two year stint. It began with AS Jayawardene who later became Governor of our Central Bank. He was followed by Karunaratne, Jayatissa, Herath, Nandalal Weerasinghe, Dheerasinghe and Ranasinghe (the last three of whom we referred to as the “The three Sinhas”- lions). They all entertained us to dinner in their homes in Maryland. There were a large number of IMF and World Bank professionals who lived close to each other in the district.
It was no surprise therefore to learn that the Democratic Senator representing Maryland was Christopher Van Hollen Jr., the son of Chris Van Hollen, a long serving US Ambassador in Colombo who was a good friend of mine. Senator Van Hollen had his early schooling in Colombo. He was a Sri Lanka supporter who was always available for meetings with us. I was happy to present a book edited by his father to mark the historic relations between Sri Lanka and the USA to mark the bicentennial.
Our Ambassadors in Washington also assisted us. They participated in our IMF-WB meetings and arranged receptions so that we could meet IMF-WB staffers socially and also meet important US politicians and officials. As they say, Washington “inside the beltway” is the happy hunting grounds of politicians and bureaucrats. I particularly remember an Ambassador joining me for a memorable concert by Ravi Shankar and his daughter Anoushka held at the Kennedy Centre. Though our work in Washington was arduous and we had to burn midnight oil, we also had a lot of fun during our visits to the US capitol.
(Excerpted from vol. 3 of the Sarath Amunugama autobiography) ✍️
Features
Getting Raked Over the Coals
In an artful move that has wrongfooted its critics, the NPP government would seem to have orchestrated the resignation of Energy Minister Kumara Jayakody and Ministry Secretary Udayanga Hemapala, while simultaneously appointing a Special Presidential Commission of Inquiry to investigate whether any irregularities or unlawful actions have taken place in the business of importing coal for the Lakvijaya power station, by the state-owned Lanka Coal Company (Private) Limited. The Lanka Coal Company (LCC) had been created as early as 2008 under the Companies Act, following a cabinet decision in 2006, for the stated purpose of importing coal for power generation not only at Lakvijaya, but also other potential thermal power stations. The presidential COI could technically cover the entire lifespan of the LCC.
While the usual busybodies are busy raking the NPP government over substandard coal brought from South Africa by an Indian supplier who had not paid the full registration fee on time, the focus should really be on the performance of the LCC from its inception to the current sensation. The sole reason for the LCC’s being is to bring home about 40 +/- shiploads of coal that (at 60,000 Metric Tonnes of coal per shipload) for a total of approximately 2.25 million MT – the amount of coal that Lakvijaya requires for burning in one year to generate power at the full 900MW installed capacity.
Because of Lakvijaya’s location on the west coast, at Norochcholai, in the Puttalam District, without a proper harbour facility, the shipment is restricted to the six/seven-month non-monsoonal period – from September/October in one year to March/April the next. 40 +/- shiploads over six/seven months work out to six or seven ships a month. So, the company has the luxury of the other six/seven months (March/April to September/October) every year to plan, procure and deliver 2.25 million MT of coal to Lakvijaya, at competitive prices and to the required quality standards. Remember, it is not uranium we are importing, but coal. For one whole company that should be a QED (quite easily done) job – you would think. On the contrary, it has hardly been a QED.
The first question that comes to mind is whether a whole company is needed to arrange six to seven shiploads of coal a month for six months of the year. Now that a Presidential Commission of Inquiry (COI) has been set up, it would be interesting to see whether the Commission would also look into the reasons why the cabinet of ministers in 2006 decided to establish a new company for shipping coal. This was five years before the first phase of Lakvijaya power generation was completed in 2011 at one third (300MW) capacity, with full (900MW) generative capacity reached three years later in 2014. The construction of Lakvijaya had begun in 2006 and the LCC was created in 2007.
The country is familiar with all the construction delays and post construction problems of the storied power plant, but all the delays at the power plant should have given the LCC time to plan and put in place a streamlined mechanism for supplying coal. That has not been the case at all. That leads to other obvious questions – which are really about missing information regarding the sourcing and procurement of coal and ensuring its quality.
Sourcing and Procuring
First sourcing. It is generally known that the LCC has been importing coal from Australia, Indonesia, Russia – the world’s top three coal exporters, as well as South Africa. But there is no information on a supplier’s association with a particular country-source or the implications of switching from one country-source to another depending on the selection of a supplier. This information is not presented either in company documents (provided on its website and two annual reports (2017 & 2020) that are online) or in the audit reports including the most recent one which is also the most extensive one. As well, there is no source comparison by price or by quality – especially for the critical heating or calorific value, which is considered a “rank parameter” in quality evaluation of coal, and is fundamental to using coal in thermal power generation.
The second question or missing piece of information is about procurement. Every January, if I am not mistaken, the LCC calls for registration of suppliers based on past procurement experience, including conformance with quality standards, and corporate business performance. The LCC publishes the “Standard Values for Coal” for each year, which include the Gross Calorific Value (GCV, usually greater than 6,150 kcal/kg), moisture and material percentage contents, and grain sizes. These requirements are based on the manufacturer’s specifications, as they should be.
Registration applications are reviewed and approved for registration by cabinet-appointed committees mostly made up of senior CEB and relevant Ministry officials, and LCC and Lakvijaya representatives. What is not available is a historical record of registered suppliers, their quality history, and changes over time. This record could also include bid takers from among the registered suppliers, tender details and prices, and selected suppliers. The absence of such record and trend analysis would likely have been a factor in creating opportunities for alleged fraud, preferential selections and the compromising of quality standards.
The third question and concern is about the quality of imported coal, especially the minimum calorific value for efficient operation of the turbines. Far more than the other two, the quality issue has been front and centre in all the news about coal over the years, and it became the subject of some detailed analysis in the April 2026 Special Audit Report on Coal Procurement.
For the 2025/2026 coal supply, 26 registered suppliers were invited to bid on 18 August 2025, 11 of them responded, and their bids were opened on 15 September 2025. Quite a short window. Of the 11 bidders, only two had previously supplied coal exceeding the rejection threshold of 5,900 kcal/kg GCV; eight of them had both exceeded and fallen short of the threshold in their previous supplies; one did not exceed the threshold at all; and the last one did not provide any GCV information. The tender was awarded to Trident Chemphar Limited of India, whose past GCV record indicates supplying nearly 300,000MT of coal exceeding 5,900 GCV, and twice as much, nearly 600,000MT, under 5,900 GCV.
As noted in the Special Audit Report, Trident had not paid the full registration fee of $5,000 when bids were sent out on 18 August 2025 and should not have a received the invitation to bid. However, the LCC would seem to have found a way to have the tender documents sent to Trident, accept Trident’s late payment of the balance due of the registration fee, and have its registration ratified four days later on 22 August 2025. As the Audit Report has correctly observed, this was a violation of the principle of fairness in procurement, especially involving competitive bidding on a tender of substantial value.
Heat Quality and Testing
As I noted earlier, the LPP’s “Standard Values for Coal” stipulates a GCV (Gross Calorific Value) greater than 6,150 kcal/kg). A lower value of 5,900 kcal/kg is used as the benchmark to reject coal loads that fall below that value. In other words, the practice has been to use 6,150 kcal/kg as the quality standard for supply, rejecting loads that come under 5,900 kcal/kg, and making price adjustments for loads with GCV that fall between the two values. Lowering the tender threshold to 5,900 opens the door for accepting supplies under what (5,900) was earlier the rejection threshold as the new normal.
The lowering of the quality requirement before and after an apparent cabinet authorization came into effect 23 June 2023 apparently after a cabinet decision. Before June 2023, eligible suppliers should have supplied a minimum of one million MT in the previous 36 months, of which at least 50% (500,000 MT) should have equaled or exceeded the rejection threshold of 5,900 GCV. After June 2023, the business turnover was reduced from one million to half a million metric tonnes, and the quality amount was reduced from 500,000 MT to 100,000 MT. These changes came home to roost in the procurement of coal for the 2025/2026 period under the new (NPP) government.
As I have noted, the selected supplier, Trident Chemphar Limited of India, did not have a good record for heat quality supply, the company’s 36-month record indicating only one third of its supply exceeded the 5,900 GCV requirement. But it was still higher than the new, but lower, standard of a supply record of 100,000 MT exceeding 5,900 GCV. But worse was yet to come.
The Trident tender provides for only 1.5 million MT of coal and of the 2.32 million MT of coal required for 2025/2026. To procure the balance and to add redundancy to the main Trident supply (which is rather puzzling), the LCC initiated a second tender in January 2026 – interestingly, not for the full 800,000 MT balance, but only 300,000 MT of it. And the second competitive tender following all proper evaluation was awarded to Taranjot Resources (Pvt) Limited, also of India. Taranjot was one of the unsuccessful bidders in the August-September 2025 tender and had the distinction of being the only one who had recorded an entire 36-month supply of coal (100% of 1.1 million MT) under 5,900 GCV. Go Figure!
The price comparisons are also revealing. Trident’s price is $98.5 CFR per MT for a total price of $148 million (SLR 45 billion) for supplying 1.5 million MT of coal. Taranjot’s price for supplying 300,000 MT of coal is $142 CFR per MT for a total price of $42.6 million (SLR 13 billion). For comparison, Taranjot’s unit price was $105 CFR per MT, three months earlier, in the main tender that was awarded to Trident. Inexplicable as it is, this fixation to switch between term tenders and spot tenders has been demonstrated by the Lanka Coal Company from the time it started procuring coal for Lakvijaya. The reasons for this are another matter that the Presidential COI will hopefully look into.
To make matters worse, Trident’s actual supply turned out to be worse than its tender. The Special Audit Report provides the results of the quality tests on the coal that was supplied by Trident in its first nine shipments before 17 February 2026. There were three categories of tests performed over nine criteria, including the Gross Calorific Value (GCV) on samples taken from each shipment of coal – first at the Port of Loading, the Richards Bay Coal Terminal in South Africa, second at the Port of Discharge, and third in the Lakvijaya Laboratory – both in Puttalam, Sri Lanka.
The Port of Loading tests showed far better results on each criterion for each of the nine shipments than the Port of Discharge tests and the Laboratory tests. Specific to the GCV heat criterion, the South African tests showed the coal in seven of the nine shipments exceeded the standard value of 6,150 kcal/kg; one of them registered 6,053, just under standard value; and the other at 5,904, just above the rejection threshold. The discharge point tests in Sri Lanka showed none of the shipments meeting or exceeding the standard value (6,150), with only two exceeding 6,000 kcal/kg. The Laboratory test results were the worst, with every one of the nine shipments registering below the rejection threshold of 5,900 kcal/kg, with five of them between 5,000 and 5,500 kcal/kg, and the other four between 4,500 and 5,000 kcal/kg.
The discrepancies in the results should not be surprising given the rather shoddy arrangements for testing at the South African end. Although testing at the source is the supplier’s responsibility subject to LCC’s approval, it is reasonable to expect that after about 15 years in this business the LCC would have set up a pool of accredited testing agencies that it could draw from for each tender. The test agent, or a pool of them, should be identified in the tender to avoid shopping around after the award.
The Special Audit Report includes extensive calculations of the energy (kilowatt-hour) and cost implications of using low calorific coal. The calculations are based on a comparison with the supply of coal between 2020 and 2025. There were 194 shipments during that period, and all of them exceeded 6,000 kcal/kg GCV, with 139 out of 194 (72%) exceeding the standard value requirement of 6,150 kcal/kg. The country-sources of these shipments are not known, and there is no information about the tests conducted on samples from these shipments, including the consistency or discrepancy between test results from the three testing locations. Curiously, this period includes the 2023/2024/2025 years which came after the June 2023 changes in quality standards, but shipments in this period do not seem to have been adversely impacted by the June 2023 changes. This overlap is not identified or noted in the Audit Report.
The Report indicates that the average consumption of coal in the 2020-2025 period was 375 grams per kwh, in comparison to the higher average consumption rate of 444 gm/kwh estimated for the coal supplied by Trident, based on coal consumption and power generation information from Lakvijaya operators. The use of lower calorific coal triggers excessive coal consumption, inefficient power generation, and the need for alternative energy sources to compensate for the shortfall in coal power generation. The Audit Report estimates the cost of excessive coal consumption associated with Trident’s nine shipments to be SLR 2.24 million. At the same time, the supply agreement includes penalty for non-compliance which is estimated to be SLR 2.32 million. These estimates are useful indicators of the order of magnitude of losses when tenders go wrong. But they will be vigorously challenged if penalties are imposed or contract is terminated.
The current low calorific coal fiasco is not the first instance of tender sloppiness involving the Lanka Coal Company. There have been allegations of fraud when coal was purchased from Australia. In 2014, there was another controversy when after selecting a Singapore shipping company for supplying coal from Indonesia, the tender was altered to include a port of origin in Russia. In 2016, the Supreme Court declared a coal supply tender null and void and ordered it to be superseded by a new tender call. In 2017, then Minister of Power and Renewable Energy, Ranjith Siyambalapitiya, dissolved the entire LCC Board of Directors, over procurement malpractices between 2009 and 2016. While the NPP did inherit a mess, it also had enough time to review and rectify the tender process, to eliminate malpractices and live up to its own promises.
Features
The Delcy Doctrine
Real politics is always played in grey areas; decisions are not made in parliamentary chambers or presidential palaces but in hotel corridors, private aircraft, and the quiet geometry of negotiated survival. What is presented as constitutional order is often only the visible skin of a deeper machinery where power is not declared but assembled. Most commentary on Venezuela portrays the removal of Nicolás Maduro as a sudden rupture that dismantled an entrenched centre of authority and rapidly produced a new governing nucleus around Delcy Rodríguez, reframing the state not as continuity but as immediate reconfiguration under a new operational centre of power.
The claim is simple in outline and explosive in implication: Maduro removed, detained abroad, his political inner circle dismantled; Rodríguez elevated from vice-presidential operator to acting head of state, inheriting not a ceremonial vacancy but a fractured state requiring immediate recomposition. Whether one treats this as confirmed fact, speculative journalism, or a constructed political scenario, the effect is the same in analytical terms. It produces a vacuum, and in politics vacuums are never empty. They are filled immediately, often brutally, and almost always by those closest to the mechanisms of control rather than the symbols of legitimacy.
Rodríguez, in this framing, is not behaving like a transitional leader waiting for instructions. She is behaving like an administrator of consolidation. Her public language repeatedly returns to a controlled moral vocabulary: Venezuela, she insists, is “forging a path of national reunification”, “free from the divisions of classism and racism”, and rooted “in the pursuit of peace.” It is a carefully constructed grammar of stabilisation. Nothing in it is accidental. Reunification replaces rupture. Peace replaces conflict. Inclusion replaces accusation. It is the language of systems attempting to re-legitimise themselves after fracture.
Yet language in moments like this does not describe reality so much as attempt to discipline it. Every invocation of unity implies prior fragmentation. Every appeal to peace implies a preceding logic of coercion. What is being built is not only a political order but an interpretive frame in which that order can survive scrutiny.
Reports associated with this narrative describe rapid administrative restructuring: ministerial changes, security realignments, and renewed engagement with global financial institutions, including the International Monetary Fund. The return of financial dialogue after years of rupture is framed as a restoration of economic normality, yet it also functions as something more fundamental: conditional recognition. Access to financial systems is never neutral. It is a form of admission into an international order that confers legitimacy as much as liquidity.
A frequently cited poll attributed to this period places Rodríguez at 73 per cent approval among Venezuelans. Whether statistically rigorous or politically constructed, the number itself performs a different function. It stabilises perception. In transitional environments, polling is rarely about measurement alone; it is about producing the sensation of consensus in moments where consensus is structurally fragile. Numbers become instruments of narrative control rather than reflections of social reality.
What emerges across these accounts is a dual reading of Rodríguez’s role. For supporters, she is the stabiliser of a collapsing system, the figure capable of converting disorder into administrative continuity. For critics, she is the executor of elite reconfiguration, replacing one closed network with another while maintaining the architecture of concentrated power. Both readings contain truth, not because they agree, but because transitional power almost always generates contradictory interpretations of the same actions.
The deeper logic resembles a familiar political pattern: when central authority collapses, the question is not who is most legitimate but who is most capable of controlling institutions that actually matter. Security structures, financial channels, energy infrastructure, and diplomatic access become the real terrain of power. Ideology becomes secondary to control of operational systems. In that sense, Rodríguez is not an anomaly but a product of a very old political problem: how to maintain state coherence when legitimacy is contested and authority has been disrupted.
There is a long historical memory for this kind of moment. Rome did not end its republic through a single act but through incremental consolidation, where Augustus transformed emergency authority into a permanent structure while preserving republican language. Power changed form without changing vocabulary. In post-revolutionary France, figures like Talleyrand survived every ideological shift by treating loyalty as subordinate to institutional survival. The pattern is not moral; it is structural. Systems under stress reward adaptability over conviction.
The uncomfortable implication is that such transitions rarely offer clean moral categories. The language of betrayal and loyalty becomes unstable when applied to environments where institutional survival itself depends on the reconfiguration of alliances. What appears as betrayal from one perspective can appear as necessity from another. Politics in such contexts is not a question of ethical clarity but of functional continuity under pressure.
Even the symbolic inheritance of Chávez-era rhetoric complicates interpretation. His denunciation of Western power as “the devil” once represented ideological confrontation with global systems of influence. In the current configuration of events, however, the same state tradition appears to be engaging selectively with those same systems through financial reintegration and diplomatic recalibration. The contradiction is not unique to Venezuela; it is a recurring feature of states that move from confrontation to survival pragmatism. Ideological purity rarely survives institutional stress.
Rodríguez, within this contested framing, operates at the intersection of these contradictions. She is simultaneously presented as guardian of sovereignty and manager of reintegration into the Western financial structures. She speaks in the language of resistance while engaging in the mechanics of external normalisation. That duality is not incoherence; it is the condition of governance under constraint, where no single ideological position can fully account for the demands of survival.
It is tempting to describe this as either redemption or capture, but both interpretations flatten the reality of transitional authority. What exists instead is a corridor of constrained decision-making, where every action is shaped by pressure from multiple directions: internal fragmentation, external expectation, institutional inertia. Within that corridor, politics becomes less about declaring direction and more about preventing collapse.
This is why the figure of Rodríguez generates such divergent readings. She is not operating in a stable system where legitimacy is settled. She is operating in a system where legitimacy itself is part of the struggle. Every reform is also a negotiation. Every consolidation is also a risk. Every gesture of unity is also an act of exclusion somewhere else in the structure.
The deeper political lesson is that modern state transitions rarely resemble the narratives used to describe them. They are not clean breaks or linear progressions. They are layered adjustments in which old structures are partially dismantled, partially preserved, and partially repurposed. The result is not resolution but managed ambiguity.
In that sense, Rodríguez is not an exception but an expression of a broader political condition: the necessity of governing through instability rather than after it. Whether one interprets that as betrayal or transformation depends less on evidence than on political positioning. The structure itself does not resolve the ambiguity; it produces it. The irony is that political systems often attempt to justify themselves through historical memory while simultaneously repeating its most uncomfortable patterns. When power changes hands, justice changes meaning. As the old saying goes, in politics, loyalty is a currency that devalues quickly.
by Nilantha Ilangamuwa
Features
Deconstructing Sugathapala de Silva (Part 1)
This is the first of a two-part essay, from my remarks at a speech I delivered at the Kolamba Kamatha Festival on Saturday, 28 March 2026.
By Uditha Devapriya
The 8th of May 1956 is considered as a watershed in the history of the British theatre. On that day a play was staged which would change the shape and face of British drama. Two years earlier a stage director, George Devine, had cofounded an organisation for staging plays by young, radical writers. It called itself the English Stage Company, the ESC. On 2 April 1956, the ESC purchased the Royal Court Theatre in London.
For its first season the company’s founders planned a cycle of five plays. The first of these was a fairly tame drama by Angus Wilson, The Mulberry Tree. The second was a production of Arthur Miller’s The Crucible. Both these had been directed several times before. In the case of The Crucible, by 1956 it had already become a classic of contemporary theatre. It was the third play that would break ground, for the ESC, the Royal Court Theatre, and British drama in general. This was John Osborne’s Look Back in Anger.
A searing look into the class system and the institution of marriage in post-war Britain, Look Back in Anger delved into ideas and themes which few British playwrights had probed with such frankness. Almost immediately it created an uproar. Many newspapers railed against it and gave it negative or lukewarm reviews. It was described as “intense, angry, feverish, and undisciplined” in one paper and “unspeakably dirty and squalid” in another. Even critics who seemed sympathetic to the story sounded caution on its themes.
The only exception was Kenneth Tynan. A highly respected critic, as outspoken as the writers and dramatists he championed, Tynan became quite receptive to Osborne’s play. Writing in The Observer, one of the oldest newspapers in the UK, he commented that it symbolised a growing rift between an older, conservative generation and a younger, more outspoken one in the context of postwar Britain. Questioning its critics, he praised Osborne for being true to life and in doing so producing a “minor miracle.”
Tynan ended his review with these words.
“I doubt if I could love anyone who did not wish to see Look Back in Anger. It is the best young play of its decade.”
The review was published five days after the play, on 13 May 1956. Six months later, on 3 November 1956 at the University of Ceylon in Peradeniya, Sri Lanka, the University Sinhalese Drama Circle staged Maname. Written and directed by Ediriweera Sarachchandra, based on a Buddhist jataka tale and anchored in a fusion of various theatrical styles, Maname became as representative of a new theatre in Sri Lanka as Look Back in Anger had been of a new theatre in Britain. After it made its way to other parts of the country, including Colombo, the press began reviewing it with as much curiosity as with Osborne’s play. Unlike the latter, however, the press gave Maname positive notices.
One of the more perceptive reviews was written by the critic and journalist Regi Siriwardena. Published in the Ceylon Daily News a few days after it was staged, Siriwardena noted that Maname represented a breakthrough in theatrical form. He argued that it was quite unlike what the Sinhalese Drama Circle or the flagship dramatic society at the University of Ceylon, DramSoc, had staged in the 1940s and 1950s. At that time the Sinhalese Drama Circle had presented local adaptations of European dramatists, from Moliere to Gogol to Chekhov. Maname did away with these trends and promoted a new theatre among Sinhala-speaking and bilingual audiences. This would be known as stylised drama.
Reflecting on these developments 25 years later, Siriwardena speculated about the social composition of those who watched Sarachchandra’s play.
“… from my impressions of the spectators who came to performances of Maname in its early years at the Borella YMBA [Young Men’s Buddhist Association] and Lumbini, I would hazard the guess that the new audience of 1956 and immediately succeeding years was composed predominantly of urban lower middle-class Sinhala speaking people.”
He argued that this underlay a much bigger achievement.
“What Maname effected then was to give the bilingual artists working in the theatre – Professor Sarachchandra and those who came in his wake: Gunasena Galappatti, Dayananda Gunawardena, and Henry Jayasena – an opening to the Sinhala-speaking lower middle class… Apart from the intrinsic dramatic achievement of Maname… [I]t was in consonance with the climate of Sinhala cultural revivalism in and after 1956.”
Siriwardena added that for most Sinhala-speaking audiences Maname contrasted strongly with the “hybrid” nurti theatre of the 1920s and 1930s. Influenced if not inflected by Parsi and European theatre, by the 1950s nurti was perceived as standing outside the canon of indigenous or national art in Sri Lanka. Though Maname was inflected by multiple cultural and artistic forms, including kabuki, for Sinhala-speaking audiences it seemed to represent a more rooted and authentic experience.
In the context of the performing arts, terms like “rooted”, “authentic”, “native”, “national”, and “indigenous” are, of course, very politically charged. It would be dangerous to deploy these terms and claim that one conception of drama is superior to the rest. Yet what is interesting is how differently cultural sentiments shaped the reception to Look Back in Anger in Britain and Maname in Sri Lanka.
In their respective countries, these plays ushered in a new idiom and broke down artistic barriers. But while Look Back in Anger was celebrated by a young generation for its unconventional themes and attitudes, Maname was praised by another generation for conforming to notions of indigeneity and authenticity.
This difference should tell us something about the social conditions that in Sri Lanka laid the foundations of plays such as Maname, and generated a wave of rebellion, resurgence, and revival which fostered a very outspoken set of playwrights. These younger artists were not just receptive to what was happening in other societies. They were also part and parcel of the most significant generational shift in their own country, in post-independence Sri Lanka: arguably one of the most important in any former colonial society.
In postwar Britain the generation of playwrights who banded around John Osborne and Look Back in Anger called themselves the Angry Young Men. Post-independence Sri Lanka’s Angry Young Men banded together in opposition to stylised theatre, while at the same time seeking encouragement and inspiration from their predecessors. These playwrights had their leaders and figureheads. Among them was Sugathapala de Silva.
Before we talk about Sugathapala de Silva, however, it’s important that we understand the extent to which postwar generational shifts and the changing undercurrents of the Sinhala theatre influenced him. As importantly, we need to understand the way in which this generation of artistes came together, and the ways in which they differed from each other. The rest of the presentation will focus on these two themes.
If the starting point to all this is 1956, my initial observation is that the cultural revival unleashed that year was contradicted by the same social and political forces that contributed to that revival. This contradiction is best seen when contrasting the initial reception to Sarachchandra’s drama with the criticisms it attracted in later years. While no one should doubt the achievements of Maname and Sinhabahu, those who followed Sarachchandra in the Sinhala theatre had very different conceptions of that theatre.
This contradiction becomes more interesting when we realise that in countries like Britain the trajectory of the theatre was more clearcut and predictable.
In Britain, the Second World War had destroyed much of its cultural infrastructure, including theatres and film halls. Yet within 10 years, a new theatre had been born, and a new generation of writers had taken root. The rupture was gradual, but when it came, it opened an entire avenue of possibilities for British theatre, cinema, and literature.
This was seen not so much in the opening of new theatres, schools, and workshops as an influx of new talent to old institutions, such as the Royal Academy of Dramatic Art, or RADA. Such developments were made possible, in part, by scholarships these institutions began offering as well as a spurt in enthusiasm for the theatre among non-elite groups. This is what helped actors like Peter O’Toole and Richard Burton get established. In an interview, O’Toole recalled how he entered RADA, just when it was opening its doors.
“A chum of mine… and I hitch-hiked our way into London to begin our lives and we jumped off the lorry, the truck, at a station called Houston and we were aiming for a men’s hostel. … And we were plodding down and I looked on my left and it said, ‘The Royal Academy of Dramatic Art’ and my chum said, ‘Well, if you’re going to be an actor this is the kind of shop where they deal with such matters, so why don’t you pop in?’… One thing led to another and I found myself, that afternoon even, turning up for the first interview and then I did an audition and [another] audition, and found, to my surprise that I was in.”
Evocative as it is, the passage underscores the point that the rupture which shook the British theatre loose was gradual and yet unfolded in one go. In Sri Lanka, on the other hand, we can discern not one but two ruptures vis-a-vis the Sinhala theatre: political revolt and cultural revival in 1956, followed by a rejection of theatrical and artistic forms which 1956 had valorised and popularised.
Let me deconstruct this further. Whereas in Britain the revival of theatre and the emergence of a radical class of dramatists was simultaneous, in Sri Lanka these developments unfolded sequentially. I suggest that this was not just necessary, but also unavoidable.
Uditha Devapriya is an independent researcher, author, columnist, and analyst whose work spans international relations, history, anthropology, and politics. He holds an LL.B. from the University of London and a Postgraduate Diploma in International Relations from the Bandaranaike Centre for International Studies (BCIS). In 2024 he was a participant in the International Visitor Leadership Program (IVLP) conducted by the US State Department. From 2022 to 2025 he served as Chief International Relations Analyst at Factum, an Asia-Pacific focused foreign policy think-tank. In 2025 he did two lecture stints in India, one as a Resident Fellow at the Kautilya School of Public Policy in Hyderabad and another on art and culture at the India International Centre in New Delhi. Since 2023, he has authored books on Sri Lankan institutions and public figures while pursuing research projects spanning art, culture, history, and geopolitics. He can be reached at udakdev1@gmail.comudakdev1@gmail.com.
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