President appoints commission to probe alleged irregularities in coal procurement

President Anura Kumara Dissanayake has appointed a Commission of Inquiry to investigate whether irregularities or illegal acts occurred within the state-owned Lanka Coal Company (Pvt) Ltd or its successors in relation to the importation of coal and the generation of electricity, covering the period from the inception of coal-based power generation in Sri Lanka until April 16, 2026.

The Commission has been appointed by President Anura Kumara Dissanayake in terms of Section 2 of the Special Presidential Commissions of Inquiry Act, No. 7 of 1978 (as amended), read together with the Special Presidential Commissions of Inquiry (Special Provisions) Act, No. 4 of 1978.

The purpose of the Commission is to examine whether any irregularities or unlawful acts have occurred in the importation of coal to Sri Lanka and in the generation of electricity by the state-owned Lanka Coal Company (Pvt) Ltd or its successors, during the period from the commencement of coal-based power generation in Sri Lanka up to 16 April 2026, according to the PMD.

The commission comprises Supreme Court Justice Gihan Kulatunga as chairman, with Court of Appeal Justice Adithya Patabendige and High Court Judge Sanjeewa Somaratne appointed as members. 

Former Ministry Secretary P. V. Bandulasena has been appointed as the Secretary to the Commission.

The Commission has been assigned the functions of examining whether any irregularities or unlawful acts have occurred in the procurement process relating to the importation of coal to Sri Lanka and, if so, assessing any financial loss caused to the Government.

It will also determine whether substandard coal has been imported during the relevant period and, in that regard, inquire into all related processes, including procurement, supply, quality testing, operational procedures and utilisation.

The Commission will further examine whether electricity generation using imported coal has been carried out at the expected level of efficiency, it said.

It will also ascertain whether, in instances where substandard coal has been imported, any legal or financial irregularities or unlawful acts have occurred in the process of power generation using such coal.

In addition, the Commission will examine whether any breaches of declared terms or conditions have occurred in the course of these processes and, if so, whether payments were withheld or other remedial measures were taken in respect of such breaches.

The Commission is also tasked with identifying the political authorities, public officials, officers of the Lanka Coal Company (Pvt) Ltd, suppliers or their representatives responsible for such acts and recommending appropriate action against them.

It will further recommend measures to prevent the recurrence of such alleged irregularities or unlawful acts in the future and to ensure proper governance.

In addition to the above matters, the Commission will report on any other irregularities or unlawful acts that may have occurred in relation to coal importation and power generation, and recommend measures to prevent the occurrence of such situations.