Sri Lanka is embroiled in a deepening energy crisis fueled by allegations of substandard coal imports, which have led to widespread power cuts, electricity tariff hikes, and intense political turmoil. The controversy culminated in the resignation of Energy Minister Kumara Jayakody and his Ministry Secretary, Professor Udayang Hemapala, on April 17th, a move stated to facilitate an impartial investigation.
Minister Jayakody had faced significant scrutiny, including an indictment by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) in the High Court for alleged corruption dating back to 2016 during his tenure as a government official in the Fertiliser Corporation. Prominent figures like Namal Rajapaksa (SLPP) and the Centre for Policy Alternatives (CPA) had demanded his resignation. A no-confidence motion (NCM) against him, submitted on March 18th and formally presented on April 10th by SJB MP Ajith P. Perera, cited alleged irregularities in coal procurement, indictments, and a failure to ensure adequate and quality coal for the Lakvijaya Power Plant. During the parliamentary debate, Deputy Finance Minister Anil Jayanth asserted the NCM was based on a "wrong premise," denying fraud and characterizing the issue as a "technical problem." Minister Jayakody publicly declared his readiness to resign if even one rupee of corruption was proven, claiming to have stopped all corrupt coal dealings. The NCM was defeated on April 10th, with 153 ruling party members voting against and 49 opposition members voting in favor.
Despite surviving the NCM, reports on April 12th indicated Minister Jayakody's removal was still under consideration. The situation escalated with government audit reports confirming coal quality issues. The Auditor General's report revealed serious irregularities in coal tender procedures and company selection, confirming that the procurement of low-quality coal for the Lakvijaya power plant was a "planned conspiracy." It further revealed that even coal supplied through emergency purchases was of substandard quality. Cotecna reports also confirmed substandard coal on the 12th and 13th ships. The current coal tender was suspended, and a 'Spot Tender' introduced to address shortages also failed.
The alleged coal fraud has had significant repercussions. President Anura Kumara Dissanayake acknowledged that low-quality coal imports have significantly affected electricity generation, with the Norochcholai complex (900 MW total capacity) currently only generating approximately 810 MW. He assured that any additional costs incurred due to substandard coal would not be passed on to consumers, stating these losses would be recovered directly from supplier companies.
However, Opposition Leader Sajith Premadasa connected these alleged corrupt deals to recent electricity tariff increases and reduced generation, highlighting a proposed 30% electricity tariff hike for May, in addition to an 11% increase in April. This May hike is projected to generate Rs. 41.5 billion, with Rs. 20.5 billion specifically intended to offset losses from low-quality coal, which led to a loss of 250 gigawatt-hours (GWh). MP Patali Champika Ranawaka confirmed electricity tariffs increased on April 1st and warned of imminent power cuts. MP Dayasiri Jayasekara revealed proposals for a 50% electricity tariff increase, while Dr. Harsha de Silva stated the IMF indicated substandard coal as a factor contributing to future tariff increases. SJB MP Sujeewa Senasinghe also alleged that the use of substandard coal has necessitated an increased reliance on diesel for electricity generation, expressing suspicion of irregularities in its procurement at excessively high prices.
Financial loss estimates vary significantly:
* MP D.V. Chanaka claimed the total loss from the coal fraud exceeds 100 billion rupees from January, with over 25 billion rupees for April, May, and June alone.
* Dr. Vidura Ralapanawa stated a loss exceeding 20 billion rupees for April to June 2026, and an additional 42 billion rupees from 'coal fraud' and fossil fuel supply issues. He also stated a daily loss of Rs. 54 million due to mismanagement of the Norochcholai power plant's coal yard.
* The Doctors' Trade Union Alliance for Medical and Civil Rights estimates the loss to be over Rs. 2 billion.
* A recent report from the National Audit Office states the government has incurred a loss exceeding Rs. 240 million due to substandard coal.
Power cuts were officially implemented across the island starting April 3rd, attributed to the coal supply crisis and a significant drop in Norochcholai's generation capacity. MP D. V. Chanaka alleged power cuts occurred at 45 locations due to low-quality coal, with 45 feeders simultaneously switched off without proper approval. The CEB Technical Officers' Union also stated that secret internal power cuts are already occurring nationwide.
Political figures escalated their criticism. Namal Rajapaksa questioned the government's anti-corruption pledges, stating presidential complicity if those involved were protected. He further accused the President of protecting former Minister Kumara Jayakody three times in Parliament during the no-confidence motion and alleged a presidential and government interest in covering up a fraudulent account in the Finance Ministry, similar to the coal fraud and the '323 containers' issue. National Freedom Front leader Wimal Weerawansa alleged a 'hybrid' theft jointly executed by the Energy Minister and the President, pledging that a future government would take legal action against all involved. MP S.M. Marikkar alleged the coal fraud amounted to an "organized robbery" resulting in over Rs. 30 billion in waste or misuse, claiming the tender document was provided to the supplier in 2025 before their official registration. MP D.V. Chanaka accused Minister Jayakody of attempting to suppress a report and engaging in conspiracies at Norochcholai, characterizing the issue as a "government fraud." The Joint Opposition also alleged that the company awarded the controversial coal contract was not registered at the time of the award.
In response to growing concerns, the Parliamentary Committee on Public Enterprises (COPE) launched an investigation on April 9th, with officials from the Coal Company reportedly acknowledging issues. The Doctors' Trade Union Alliance filed a written complaint with the Criminal Investigation Department (CID). Chief Government Whip Dr. Nalinda Jayatissa announced an authorized committee would investigate 462 coal shipments imported over the past 15 years. Port and Civil Aviation Minister Anura Karunathilaka announced the government has already withheld Rs. 9.6 billion in payments to companies that supplied substandard coal, and Minister Jayatissa stated the government is collecting a USD 17 million fine for quality changes. Minister Bimal Rathnayake later specified that Rs. 915 million in payments had been withheld from a coal supplier due to substandard shipments, claiming this amount exceeded the estimated loss and that the financial impact had not fallen on the public or government.
Following the resignations, President Dissanayake appointed a new, fully empowered Special Presidential Commission of Inquiry to investigate all alleged irregularities and illegal activities in coal importation and electricity production by the Lanka Coal Company from the inception of coal-based power generation in Sri Lanka up to April 16, 2026. The commission, established under Section 2 of the Special Presidential Commissions of Inquiry Act, is chaired by Supreme Court Justice Gihan Kulatunga, with Court of Appeal Judge Aditya Patabendige and High Court Judge Sanjeewa Somaratne as members. P.V. Bandulasena, former State Ministry Secretary, was named its secretary. The President has instructed the commission to complete its investigations and submit its report within six months. An office for the commission was established within the Colombo Hulftsdorp Court Complex, commencing operations on April 22, 2026. On April 11th, Presidential Secretary Dr. Nandika Sanath Kumaranayaka lodged a complaint with the CID, requesting a formal investigation into all coal shipments imported from 2009 to date. Following this, special police protection was deployed to the Lanka Coal Company office, and the CID subsequently sealed its Kohuwala office. Dr. Nishantha Samarawira, NPP Galle District MP and Chairman of the COPE Committee, clarified that a full investigation into the coal import process is currently being conducted by the Criminal Investigation Department (CID).
A new controversy emerged on April 13th with journalist Uvindu Kurukulasuriya revealing an audio clip alleging irregularities in a recent spot tender for coal, specifically that tender documents for 'Hayleys' company were back-dated. SJB MP Mujibur Rahman, accompanied by Waruna Rajapaksha, lodged a new complaint with the CID requesting an immediate investigation into the audio clip and alleged back-dating of Bid Bond documents. Lanka Coal Company Chairman Jayantha Rathnayake rejected these claims, stating the audio was a distorted interpretation of a March 25th conversation about submitting a performance bond.
Despite the resignations and ongoing investigations, Minister Vijitha Herath repeatedly stated that no investigation has confirmed former Energy Minister Kumar Jayakody's involvement in corruption related to substandard coal imports. He claimed the Auditor General's report confirmed Jayakody's non-involvement, and the Parliamentary Committee on Public Enterprise (COPE) found no irregularities in these imports. MP Chandana Suriyaarachchi of the National People's Power (NPP) echoed this, stating no fraud had occurred and that the opposition had failed to substantiate their claims in Parliament or COPE. Minister Herath also made a public appeal for anyone with information regarding alleged fraud and corruption to submit it to the Special Presidential Commission, clarifying that while no fraud occurred in coal importation, he accepts that the imported coal was of substandard quality. Government MP Devananda Surawira also claimed that the Presidential Commission, which is investigating coal imports since 2009, has put the opposition in a difficult position, stating that the opposition failed to prove fraud against Minister Jayakody in parliamentary debates or before the COPE committee. Trade Minister Wasantha Samarasinghe rejected certain findings in the Auditor General's report on controversial coal importation, stating that the report does not indicate any fraud but rather presents observations on possible scenarios. He emphasized that the government's position is that no fraud occurred in relation to the incident, explaining that 'Spot Tenders' were necessitated by a 41-day delay in coal procurement during November-December 2025. Dr. Nishantha Samarawira also clarified that substandard coal was not knowingly imported, but rather the quality of the imported coal was found to be deficient.
Political reactions to the resignations were swift. SLPP National Organiser MP Namal Rajapaksa stated the resignation was "a bit too late" and that it cannot compensate for the "massive financial loss to the public," further asserting that President Anura Kumara Dissanayake should take direct responsibility for Jayakody's appointment given past allegations. The Samagi Jana Balawegaya (SJB) called the resignations an attempt to suppress the coal fraud and held the President and the entire Cabinet responsible for the "corrupt deal." SJB National Organiser Tissa Attanayake claimed Minister Jayakody was "forced to resign" and that government MPs who voted against the no-confidence motion should be ashamed. SJB MP Sujeewa Senasinghe criticized the joint efforts of Ministers Vijitha Herath, Bimal Rathnayake, and Nalinda Jayatissa to clear the government of coal fraud allegations, stating such attempts would be fruitless. ITAK member M.A. Sumanthiran welcomed the resignation but criticized the government and NPP MPs for defending Jayakody. International media outlets also widely reported on the resignation, citing severe pressure within the government and questioning its anti-corruption pledges. SJB Colombo District MP S. M. Marikkar claimed the resignation was a result of intense public pressure and indicated a defeat for the government. MP Devananda Surawira urged the opposition to present any facts regarding the coal incident directly to the Special Presidential Commission instead of making criticisms elsewhere. The Samagi Jana Balawegaya (SJB) has announced its decision to file a complaint with the Bribery or Corruption Allegations Investigation Commission (CIABOC) and will submit relevant documents, in addition to the complaint already filed with the CID last week concerning these transactions. Former Minister Lakshman Kiriella urged Parliament to immediately submit the audit report on the coal fraud to the Attorney General via COPE under Standing Order 121, and challenged the government to demonstrate any prior instances of allegations concerning the import of substandard coal during his extensive parliamentary career, asserting that the current accusation is historically unprecedented. Former Minister Patali Champika Ranawaka, as Leader of the United Republic Front, pledged to fully disclose all facts related to coal transactions since 2009, stating that a comprehensive audit report on coal imports from 2009 to 2016, along with important documents, has been submitted by the Auditor General. He also called for immediate investigations into both coal fraud and high-priced fuel imports, accusing the government of using Presidential Commissions to cover up crimes. The Joint Opposition's party leaders have decided to file a complaint with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), seeking an immediate investigation into high-priced fuel purchases.
Regarding the future of the Energy Ministry, the President has decided that the vacant portfolio will be assigned to an existing cabinet minister temporarily rather than a new appointee. Anura Karunathilaka has been appointed as the new Energy Minister, emphasizing the government's policy of continuous electricity and fuel supply. No new permanent appointment is expected until the Presidential Commission's investigation is concluded, with the report anticipated within the next six months. If Mr. Jayakody is acquitted, he is expected to be reappointed to the Energy Minister portfolio. A special meeting of Joint Opposition party leaders was scheduled for April 20th to discuss the resignation and future actions against the government, with leaders stating the minister's resignation alone is insufficient as the entire Cabinet is responsible for the billions in losses incurred. Deputy Minister of Labor Mahinda Jayasinghe challenged critics to present their evidence directly to the special Presidential Commission or the ongoing CID investigation, stating the investigation would determine if the fraud was committed by the current or past governments. Former Minister Udaya Gammanpila alleged that Kumara Jayakody is not a member of the National People's Power (NPP) or Janatha Vimukthi Peramuna (JVP), and was brought in via the national list specifically to steal, claiming Jayakody has been President Anura Kumara Dissanayake's 'commission crow' since 2004. Meanwhile, SJB MP S.S. Marikkar revealed that the company previously involved in coal imports has been authorized to import 25 additional coal ships.