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Sri Lanka loses Rs.7.5 bn due to coal tender irregularities: FSP
The NPP government’s coal procurement process has once again come under scrutiny following allegations by the Frontline Socialist Party (FSP) that substandard coal has been imported for power generation and that tender procedures were manipulated to favour a specific supplier.
Addressing the media after a party meeting in Maharagama on Saturday, FSP Education Secretary Pubudu Jagoda said a test report issued by the government laboratory at the Lakvijaya Power Plant had confirmed that the latest coal shipment unloaded in Sri Lanka did not meet the required quality standards. According to the report, the coal’s calorific value ranged between 5,600 and 5,800 kilocalories per kilo, below the 5,900–6,200 kCal/kg range specified in tender requirements.
Jagoda warned that lower calorific value coal would require higher volumes to generate the same amount of electricity, increasing costs significantly. Preliminary estimates, he said, indicated an additional financial burden of around Rs. 7,500 million, which might eventually be passed on to consumers through higher electricity tariffs.
The FSP also accused the government of tailoring procurement rules to benefit the Indian supplier, which has deposited bonds for long-term coal supply for the upcoming season. Jagoda alleged that tender conditions had been altered to accommodate the company, pointing to changes in coal reserve requirements. Under the 2021 Sri Lanka Coal Registration Document, suppliers were required to maintain a minimum reserve of one million metric tonnes with a gross calorific value of 5,900 kCal/kg. This threshold, he said, had been reduced to 100,000 metric tonnes in the 2025 document which is a 90% reduction raising serious concerns.
He further cited past allegations against the Indian company, including findings in a 2016 Auditor General’s report that the company violated procurement guidelines regarding a rice supply contract with Sathosa in 2014. Jagoda also referred to legal issues involving individuals linked to the company, and the suspension of a representative by the International Cricket Council in 2019 over match-fixing allegations.
Beyond company-specific concerns, Jagoda criticised what he described as systemic manipulation of the coal tender process. He questioned why the coal tender, typically called in February or March, was delayed until July, despite electricity being declared an essential service. He also alleged that the tender submission period had been progressively shortened from the internationally accepted six weeks to five weeks, and now reportedly to three giving an unfair advantage to suppliers with existing stock.
The Ministry of Energy has recently issued an amended tender to procure 4.5 million metric tonnes of coal for the Lanka Coal Company for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender.
Jagoda warned that delays and irregularities could lead to coal shortages, higher spot market purchases, increased electricity costs, and even power cuts if hydropower generation falls short. He called for urgent investigations into the procurement process, insisting that the burden of alleged mismanagement and corruption must not be transferred to the public.
by Chaminda Silva ✍️
News
Sorry plight of 1.6 mn children and young adults with disabilities in the country
An estimated 1.6 million children and young people with disabilities in Sri Lanka continue to face significant barriers to economic independence, with nearly 70 per cent remaining unemployed and dependent on others for their daily needs, Country Director of ChildFund Sri Lanka, Adithi Gosh has said.
Addressing a media briefing, Gosh stressed the urgent need to strengthen livelihood opportunities for persons with disabilities and enhance their participation in the workforce.
She said ChildFund Sri Lanka had prioritised market-driven and demand-oriented vocational training programmes to improve the livelihoods of more than 12,000 children and young people with disabilities. The initiative is being implemented through a long-term collaborative programme in coordination with the ChildFund National Centre.
According to Gosh, the programme seeks to create sustainable pathways to employment and entrepreneurship for young people between the ages of 15 and 24 who have physical, sensory and neurodevelopmental disabilities. Special attention is being given to youth from low-income and marginalised communities.
She noted that the programme is designed not only to equip beneficiaries with skills required by the labour market but also to improve their access to employment opportunities and self-employment ventures.
Gosh emphasised that the long-term sustainability of the initiative would depend on strengthening existing government systems and institutional capacities rather than establishing separate parallel service structures.
“The focus is on embedding policies and practices that ensure equal participation and access for all within existing systems,” she said.
The programme also aims to promote greater inclusion of persons with disabilities in economic and social life by creating an enabling environment that supports equal opportunities and participation.
Among those present at the media briefing were Director of Business Development of ChildFund Sri Lanka Dinanta Thambavita, Programme Director Dr. Ranjan Thawaseelan and Communication Expert Nishanthi Nonis.
Officials said the initiative forms part of broader efforts to address the challenges faced by young persons with disabilities and to promote inclusive economic development through skills training, entrepreneurship and institutional support.
Text and Pic By Sujatha Jayaratne ✍️
News
Sri Lanka–Thailand Free Trade Agreement at last sees the light of day
The Sri Lanka–Thailand Free Trade Agreement (SLTFTA), signed in 2024 and awaiting implementation, will serve as a key catalyst for strengthening trade, investment and supply-chain resilience between the two countries amid growing global economic uncertainties, Thailand’s Ambassador to Sri Lanka, Paitoon Mahapannaporn, said.
Addressing the Thailand–Sri Lanka Business Forum: Trade, Investment and Beyond in Colombo on June 18, Ambassador Mahapannaporn noted that bilateral trade had reached USD 649 million in 2025, marking a 48 per cent increase over the previous year.
He said stronger partnerships and diversified supply chains had become increasingly important in the face of geopolitical crises affecting global business and investor confidence. The SLTFTA would help boost bilateral trade, reduce tariffs, open new markets and improve access to global supply chains for both countries, he added.
The forum was organised by the Royal Thai Embassy in collaboration with the Sri Lanka–Thailand Business Council and the Sri Lanka–Greater Mekong Business Council and brought together senior government officials, diplomats, business leaders and industry experts from both nations.
President of the Sri Lanka–Thailand Business Council, Rizan Nazeer, highlighted the importance of building resilient cross-border partnerships by combining Thailand’s advanced infrastructure, capital strength and industrial expertise with Sri Lanka’s skilled and cost-effective workforce.
President of the Sri Lanka–Greater Mekong Business Council, Nimal Ratnayake, said the forum was not merely about trade opportunities but also about fostering trust, knowledge-sharing and long-term partnerships that would contribute to sustainable growth in both countries.
Delivering a presentation on trade and FTA opportunities, Secretary to the Ministry of Trade, Commerce, Food Security and Co-operative Development, K. A. Vimalenthirarajah, stressed the need for predictable and effective implementation of the agreement. He said sectors such as logistics, packaging, research and development, food processing, information technology, minerals and technology-driven investments stood to benefit significantly.
Senior Deputy Director of Customs, Compliance and Facilitation Directorate of Sri Lanka Customs, Chamila Prasantha Bopage, outlined customs procedures and regulatory requirements, emphasising the importance of balancing trade facilitation with regulatory oversight.
Providing a Thai business perspective, Dr. Visit Limlurcha, President of the Thai Future Food Trade Association and Vice Chairman of the Thai Chamber of Commerce and Board of Trade of Thailand, described Sri Lanka as a strategic gateway to South Asia and the Middle East. He identified food and agriculture, healthcare, IT, electronics, machinery, construction, tourism, logistics and textiles among sectors with strong potential for bilateral collaboration.
Meanwhile, Deputy Dean of the Graduate School of the University of the Thai Chamber of Commerce, Dr. Phusit Wonglorsaichon said competitiveness in the modern economy depended on digital platforms, effective use of FTAs, research and development, technology adoption and innovation.
Director General of the Board of Investment, Renuka Weerakone, presented Sri Lanka as an increasingly attractive destination for foreign direct investment, noting that 15 pioneering Thai investors were already operating in the country. She highlighted Sri Lanka’s strategic location, expanding logistics infrastructure and investor-friendly policies, including provisions allowing 100 per cent foreign ownership in most sectors.
The forum concluded with a business-matching session involving 27 delegates from 17 Thai companies and more than 100 Sri Lankan counterparts, who explored opportunities for collaboration across food and agriculture, health and personal care, IT and construction, hospitality and logistics, and textiles and household products. Officials said the engagements reflected the growing momentum towards deeper economic integration between Sri Lanka and Thailand under the proposed FTA framework.
News
Pathfinder Foundation hosts luncheon meeting for visiting US Assistant Secretary of State
Milinda Moragoda, Founder of the Pathfinder Foundation, hosted a luncheon meeting for Dr. S. Paul Kapur, U.S. Assistant Secretary of State for South and Central Asian Affairs, on 23 June 2026.
The meeting was attended by prominent business leaders, heads of diplomatic missions, policy experts, and representatives from key sectors of the Sri Lankan economy, offering an opportunity for constructive engagement on issues of local and regional significance.
During his remarks, Assistant Secretary Kapur shared his perspectives on the role of small maritime states in promoting a secure and prosperous Indian Ocean region. Discussions also covered current geopolitical and economic developments, regional connectivity, maritime security, trade, and opportunities for enhanced cooperation.
The gathering provided a valuable platform for participants to exchange views on emerging challenges, opportunities, and strategies to foster sustainable economic growth and regional stability. The interactive dialogue underscored the importance of partnerships, knowledge sharing, and collaboration in addressing the evolving dynamics of the Indo-Pacific region.
The Pathfinder Foundation continues to serve as a leading independent think tank in Sri Lanka, fostering informed dialogue and promoting the exchange of ideas on issues of national, regional, and global importance. Through its programmes and engagements, the Foundation seeks to contribute to policy discourse and strengthen understanding of contemporary challenges and opportunities.
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