News
Patali: Four out of 25 low-quality coal shipments caused Rs. 1,759 mn loss
CIABOC urged to deal with NPP the way it dealt with Mahindananda, Nalin
Declaring that large-scale premeditated coal import fraud had caused massive losses, ex-Minister Patali Champika Ranawaka has urged the CIABOC (Commission to Investigate Allegations of Bribery or Corruption) to deal with it, the way former Ministers Mahindananda Aluthgamage and Nalin Fernando were dealt with.
The Colombo High Court Trial-at-Bar sentenced Aluthgamage and former Sathosa Chairman Fernando on 29th May, 2025, for 20 and 25 years RI, respectively, for committing the offence of corruption by procuring 14,000 carrom boards and 11,000 checkers boards, through Sathosa, to distribute to schools and sports clubs selected by the Sports Ministry, and distributing them to party offices of the government during the 2015 Presidential Election, thus causing a loss of over Rs. 53 mn to the government.
Ranawaka, in a statement posted over the weekend on social media, based on documents furnished to Parliament by the CEB recently, declared that the procurement of substandard coal through an Indian company, faulted for money laundering, has so far resulted in a staggering loss of Rs 1,759 mn.
According to the former Colombo District lawmaker, the losses had been brought down to Rs 1,759 mn after the supplier compensated the government to the tune of Rs 1,037. Pointing out that the losses had been estimated at Rs. 2,796 before the supplier was fined, Ranawaka emphasised that the losses mentioned in CEB documents pertained to four shipments of inferior quality coal.
Ranawaka who had been at the forefront of anti-corruption campaigns over the years said that the government reached an agreement with the controversial supplier and so far only six of the 25 coal shipments were received. Based on the losses so far accrued due to the use of inferior quality coal at the Norochcholai Lakvijaya coal-fired power plant, Ranawaka pointed out gravity of the situation.
Commenting on the penalties imposed on the supplier, Ranawaka said that as he had secured shipments at a much lower cost-perhaps USD 30 to 40 per ton less than the usual rate, paying compensation wouldn’t have been an issue.
The former parliamentarian flayed the CIABOC for its failure to investigate the coal fraud in spite of several complaints lodged with it. Ranawaka warned that the country would have to face the consequences of using what he called low-grade coal. The damages to the plant would have to be estimated later, Ranawaka said, while underscoring the importance of using coal aligned with the plant design.
The Island received a copy of letter CEB General Manager Engineer K.S.I. Kumara sent to the Secretary to the Energy Ministry that exposed the procurement of low-quality coal.
Alleging that President Anura Kumara Dissanayake and the entire cabinet of ministers should be held responsible for the procurement of low-quality products knowing the consequences, Ranawaka underscored the need to identify all those who benefited from the coal deal. The ex-lawmaker questioned the possibility of the coal deal being part of a money laundering project.
Ranawaka said that the powers that be wanted 7.5 mn electricity consumers to bear the losses resulting from the corrupt deal. Having repeatedly promised to slash electricity tariffs substantially, the government was now aiming to crease tariffs by 13.5 percent. Hapless Sri Lankans were charged higher rates at a time crude oil and gas were low in the international market, he claimed.
Ranawaka urged the public to protest while calling for an organized campaign to highlight the corruption at the highest levels of the incumbent dispensation. Ranawaka said that slapping of fines proved that coal shipments hadn’t met the stipulated specifications and all attempts by the current dispensation to shield those responsible failed.
At the onset of his statement, Ranawaka said that the government entered into this corrupt coal deal in spite of the Attorney General’s Office advising them to do away with slack procedures in place during the economic crisis.
Following a recent visit to the power stations, former UNP Deputy Minister Ajith P. Perera, who is also a member of the Constitutional Council eclared that the coal scam had been confirmed. “The biggest tender under the NPP government is corrupt,” the attorney-at-law alleged.
By Shamindra Ferdinando
News
Burning of low-grade coal at N’cholai plant increases pollution: Parliament
Parliament yesterday (30) said the use of inferior quality coal at Norochcholai Lak Vijaya coal-fired power plant caused environmental pollution.
The Opposition has accused the Energy Ministry of importing low quality coal and the CEB has directly blamed the developing crisis in coal imported from South Africa.
The Parliament is scheduled to debate a no-confidence motion moved by SJB-led Opposition against Energy Minister Kumara Jayakody on 10 April.
The Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability has instructed officials to immediately prepare a plan for the environmentally friendly disposal of ash emitted from the Norochcholai Lak Vijaya Power Plant.
These instructions were given at a recent meeting of the Committee held in Parliament, under the Chairmanship of Member of Parliament Hector Appuhamy.
It was revealed during the meeting that due to issues related to the quality of coal imported to Sri Lanka for power generation, the volume of ash emitted during electricity generation had increased significantly. Officials were directed to formulate a plan under the leadership of the District Secretary of the Puttalam District, to take the necessary measures.
It was also proposed that the possibility of reusing the coal ash for production purposes be studied, and that any revenue generated from such products be utilised for welfare projects benefiting the communities affected by the power plant.
In addition, the Committee instructed the Central Environmental Authority to submit a comprehensive report on whether water and air pollution have occurred as a result of the Norochcholai Power Plant. Furthermore, the North Western Provincial Environmental Authority was also instructed to provide responses within two weeks regarding the questionnaire and related matters submitted by the Committee in connection with the Norochcholai Power Plant.
Officials of the North Western Provincial Environmental Authority stated that although the volume of ash emitted from the plant had increased, the filtration system in use at the plant was sufficient to absorb it. Several matters, including the issuance of environmental protection licenses for the power plant, were discussed at the committee meeting.
News
Tariff shock from 01 April as power costs climb across the board
By Ifham Nizam
Electricity consumers will face a fresh financial jolt from 01 April, with the Public Utilities Commission of Sri Lanka (PUCSL) approving a countrywide tariff increase that will push up monthly bills across all consumption categories, with the heaviest burden falling on high-end users.
The decision follows a proposal by the Ceylon Electricity Board (CEB), which sought a 13.56 percent upward revision for the second quarter of the year, citing mounting operational costs and financial pressures within the power sector.
Under the new tariff structure, even the lowest-income households will not be spared, though the increases at the bottom tiers remain relatively modest. Consumers using between 0–30 units will see a 4.3 percent rise, adding approximately Rs. 15 to their monthly bill. Those in the 31–60 unit bracket will experience a 6.9 percent increase, translating to an additional Rs. 45.
For middle-tier users, the impact becomes more pronounced. Households consuming 61–90 units will pay around Rs. 120 more per month, following a 6.9 percent hike, while those in the 91–120 unit range will face a sharper increase of 7.1 percent, pushing their monthly costs up by about Rs. 420.
However, the steepest escalation is reserved for heavy electricity users. Consumers exceeding 180 units will be hit with a staggering 25 percent increase — the highest adjustment under the latest revision — raising serious concerns over affordability, particularly for urban households and small businesses already grappling with rising living costs.
Energy sector analysts warn that the latest revision signals deeper structural issues within the power sector, including reliance on costly thermal generation, currency pressures, and inefficiencies in energy procurement.
“The burden is gradually shifting toward consumers as the sector struggles to maintain financial stability,” a senior power sector analyst said, noting that repeated tariff adjustments could further strain public tolerance.
The PUCSL maintained that the revision was necessary to ensure the sustainability of electricity supply and to prevent a recurrence of crises that previously led to widespread outages and load shedding. The regulator has also indicated that cost-reflective pricing remains a key policy direction, particularly as global energy markets remain volatile.
The move comes at a time when many households are still adjusting to broader economic pressures, including high food prices and transport costs, raising fears that the tariff hike could have a cascading effect on the cost of living.
Small and medium enterprises, already operating on thin margins, are also expected to feel the pinch, with higher electricity costs likely to feed into production expenses and retail prices.
Despite the increases, questions remain over whether the tariff revision alone will be sufficient to stabilise the financially strained power sector, or if further adjustments — or reforms — may be inevitable in the months ahead.
With electricity demand steadily rising and generation costs remaining unpredictable, consumers now brace for yet another phase of higher utility bills, underscoring the fragile balance between energy security and economic resilience.
News
CDL under new management completes major Norwegian ship order
The Colombo Dockyard (CDL) under its new management has completed a major contract undertaken in March 2020 to build ten ships for Norwegian Misje Eco Bulk AS.
The company said that in spite of unprecedented global disruptions, a pandemic, an economic bankruptcy, regional wars, supply chain disruptions, logistical uncertainties, and untold hardships, they had been able somehow to meet contractual obligations.
The tenth ship was delivered to Misje Eco Bulk AS at the Colombo harbour recently.
Indian shipbuilding giant Mazagon Dock Shipbuilders Ltd. (MDL), affiliated to India’s Ministry of Defence (MOD), acquired controlling stake in CDL from Japanese shipbuilder Onomichi in mid last year MDL paid USD 52.96 mn for the stake.

Dileesh Rosemary De Silva breaking a bottle of champagne in celebration. She is flanked by Roald Misje CEO Misje EcoBulk AS and Thusitha Herath Site Team Manager of Misje EcoBulk AS
The owners named the vessel ‘Misje Kandy’ as a tribute to CDL. Ceremonial breaking of the milk pot in accordance with the Sri Lankan traditions was done by the Colombo Dockyard’s Project Manager of the series of 10 vessels S.M.S.B. Serasinghe. In accordance with the western traditions the ceremonial breaking of the Champagne bottle was done by the God Mother of the vessel Mrs. Dileesh Rosemary de Silva.
The 89.95m DNV-classed Eco Bulker was conceptualised by Wartsila Ship Design Norway, with detailed design work carried out by CDPLC’s skilled in-house design team. In line with the latest trends in sustainable shipping. The vessel is equipped with an advanced Energy Storage Battery System (ESS) for Electric Hybrid Propulsion, complementing the conventional diesel propulsion system to enhance operational performance and reduce environmental impact.
Indian High Commissioner in Colombo Santosh Jha attended the ship launch with the government represented by deputy ministers Nishantha Jayaweera and Janitha Kodithuwakku.
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