Coal Imports, Plant Efficiency in Focus as Presidential Commission Begins Work

President Anura Kumara Dissanayake has appointed a Special Presidential Commission to investigate alleged irregularities in Sri Lanka’s coal importation and coal-based power generation, in a move that signals tighter scrutiny of a critical and often contentious sector.

The Commission, established under the Special Presidential Commissions of Inquiry Act, will examine activities spanning from the inception of coal-powered electricity generation in the country up to 16 April 2026. Its mandate covers both procurement processes and operational performance, with a focus on identifying potential legal breaches, financial losses, and governance gaps.

Chaired by Supreme Court Justice Gihan Kulatunga, the panel includes Court of Appeal Justice Adithya Patabendige and High Court Judge Sanjeewa Somaratne. Former Ministry Secretary P. V. Bandulasena will serve as Secretary to the Commission.

At the centre of the probe is the role of Lanka Coal Company (Pvt) Ltd and its successors. The Commission will assess whether procurement practices adhered to due process, and whether any unlawful conduct or irregularities resulted in financial losses to the State.

A key area of inquiry will be the quality of coal imports. The Commission is tasked with determining whether substandard coal was supplied, and if so, whether this affected plant efficiency, operational performance, or resulted in improper financial or contractual decisions. This includes reviewing supply chains, testing protocols, and plant-level utilisation.

The investigation will also examine whether coal-based electricity generation met expected efficiency benchmarks, and whether any deviations were linked to procurement or quality failures. Where contractual terms may have been breached, the Commission will assess whether appropriate remedial actions, including payment withholdings, were taken.

Responsibility will be a central focus. The Commission is empowered to identify political authorities, public officials, company officers, suppliers, and intermediaries who may have been involved in any wrongdoing, and to recommend appropriate action.

Beyond retrospective accountability, the Commission has been tasked with proposing structural reforms. These include measures to strengthen procurement governance, improve oversight, and prevent a recurrence of such issues in the future.

The probe comes amid long-standing concerns over transparency and efficiency in Sri Lanka’s energy sector, where coal remains a key but controversial component of the national power mix.