FINANCIAL CHRONICLE – In a significant development that has rocked Sri Lanka’s political arena, Energy Minister Kumar Jayakody has resigned amid allegations concerning a coal procurement contract that resulted in inferior quality coal being supplied. This issue, which relates to the coal imported for the Norochcholai Power Plant, constructed by China, has compelled President Anura Kumara Dissanayake’s administration to implement extraordinary steps to uphold its anti-corruption commitment.
The timing of the resignation comes after considerable reputational damage to the government, which could have been mitigated had decisive action been taken earlier. This situation also raises concerns for previous energy ministers and government officials involved in coal procurement, especially with the establishment of a special presidential commission tasked with investigating all contracts related to the Norochcholai plant since its inception.
The predicament began when internal test results from the Ceylon Electricity Board (CEB) were leaked, revealing that a large shipment of coal did not meet the required calorific standards. Although an international laboratory in Indonesia certified the coal at over 5,900 kcal/kg, tests conducted upon arrival in Sri Lanka indicated values as low as 5,520 kcal/kg. Such a discrepancy raises the possibility of either tampering during transit or fraudulent certification.
The financial repercussions of using substandard coal are substantial, as it not only jeopardizes the delicate machinery of the power plant but also leads to reduced energy output while incurring the same costs, potentially costing the state millions.
During a press conference on Friday (17), Foreign Minister Vijitha Herath defended the Energy Minister, asserting that while the arrival of a “low-quality” coal batch was acknowledged, the procurement process adhered strictly to established protocols without any indications of corruption. Cabinet Spokesman and Health Minister Nalinda Jayatissa reiterated that the current government has initiated a five-year anti-corruption strategy and that all procurement activities complied with international standards.
Herath acknowledged the low quality of the coal received, which has led to a crisis of confidence that prompted the minister’s resignation.
In response to the growing public uproar and allegations of collusion between officials and suppliers, President Dissanayake appointed a high-profile Presidential Commission, led by Supreme Court Justice Gihan Kulatunga. This commission’s mandate includes a comprehensive investigation into all coal-related power generation activities in Sri Lanka up to April 16, 2026. It aims to identify political figures and officials at Lanka Coal Company (Pvt) Ltd who authorized the shipments and assess the government’s legal options for suspending payments to suppliers of substandard fuel. Furthermore, it will determine whether this incident was an isolated occurrence or indicative of a broader systemic issue regarding coal procurement in the country.
The resignation has elicited mixed interpretations. Opposition parties view it as an admission of guilt, suggesting that the new government has succumbed to the same pitfalls as its predecessors. Conversely, the administration portrays it as part of a shift towards accountability, where ministers are expected to take responsibility for their departments, even in the absence of direct evidence of corruption. During the press briefing, Minister Bimal Rathnayake challenged opposition members to present their claims to the newly established commission rather than making accusations in Parliament.
Furthermore, the government was reminded of its earlier defense of a former speaker who resigned after failing to substantiate his claim of holding a doctorate from a Japanese university, highlighting the issue of accountability within the administration. Observers note that the government’s true intentions behind these actions remain uncertain, with analysts questioning whether this represents a genuine effort to combat systemic corruption or merely a tactic to buy time.
Beyond the political ramifications, the controversial coal deal poses a serious risk to Sri Lanka’s energy stability. The Norochcholai power plant is a crucial source of base-load electricity for the nation. The use of inferior coal can lead to heightened maintenance expenses due to impurities that may cause leaks in boiler tubes and long-term structural issues in furnaces. This situation could also result in increased electricity prices, as more coal would need to be burned to meet energy demands, raising the cost per kilowatt-hour.
As Sri Lanka navigates its economic challenges, incurring high costs for low-grade fuel directly impacts the national economy. Although the government has assured that it will do everything possible to avoid power outages, the country might find itself relying on external sources, particularly from the Middle East, to secure more affordable fuel and mitigate energy costs. (Colombo/April 18/2026)
