2026 in a nutshell so far

Colombo, April 29 (Daily Mirror) - The coal procurement scandal has centred on allegations of systemic corruption, the delivery of substandard fuel, and major financial losses involving the state-owned Lanka Coal Company (LCC). The controversy intensified in April 2026 following audit reports that revealed the government had imported coal with a significantly lower Gross Calorific Value (GCV) than the required 6,150 kcal/kg, with some shipments recording as low as 5,520 kcal/kg. This poor-quality fuel forced the Lakvijaya Power Plant to burn roughly 20% more coal to maintain output, resulting in an estimated direct loss of over Rs. 2.24 billion. Furthermore, the tender process was marred by claims that unqualified and unregistered suppliers, such as Trident Chemphar Limited, were allowed to participate and were allegedly favoured through manipulated deadlines.

Outcome

The fallout from these irregularities led to the immediate sealing of the Lanka Coal Company headquarters by the Criminal Investigation Department (CID) on April 11, 2026, to prevent the destruction of evidence. The political pressure eventually resulted in the resignation of Minister of Energy Kumara Jayakody and the Ministry Secretary on April 17, 2026.

This decision was taken to facilitate an impartial and independent investigation by the Special Presidential Commission appointed to probe matters related to coal imports. President Anura Kumara Dissanayake appointed a high-level Presidential Commission of Inquiry on April 17, 2026, to investigate coal imports and power generation irregularities dating back to the inception of coal power in the country. The commission is chaired by Supreme Court Justice Gihan Kulatunga, alongside Court of Appeal Justice Adithya Patabendige and High Court Judge Sanjeewa Somaratne, with former Ministry Secretary P.V. Bandulasena serving as Secretary.

This commission is mandated to identify political authorities and public officials responsible for the procurement lapses, assess the total financial damage to the State, and recommend structural reforms to ensure transparency in future energy contracts.

US$2.5Mn cyber theft

In April 2026, the Ministry of Finance reported a major cyber security breach in which hackers allegedly siphoned off US$ 2.5 million. The funds were reportedly intended for a debt repayment to Australia but were diverted after unauthorized access was gained to the External Resources Department’s computer systems.

Outcome

Following public revelation by the association called ' Free Lawyers', the Finance Ministry admitted that US $ 2.5 million due for payment to Australia as part of debt servicing had been stolen by hackers.

An investigation is now underway with the involvement of multiple agencies such as the Criminal Investigation Department (CID) and the Central Bank . Besides , Australian Federal Police (AFP) is also assisting in investigation.

As part of the ongoing investigation, four senior officials from the Public Debt Management Office have been suspended. Investigation officers have reportedly taken possession of laptops, mobile phones and SIM cards used by staff of the External Resources Department, which also handled the earlier USD 2.5 million debt repayment transaction to Australia.

French loan documents missing

Following the incident of US$2.5Mn cyber theft, it was also revealed that critical documents related to the future repayment of a French loan had gone missing from the Treasury’s digital records.

It was reported that initial investigations found the missing files relate to a scheduled French loan repayment, raising concerns they may have been accessed or removed as part of preparations for another fraud attempt.

US$ 11 million diesel procurement irregularity

The energy sector has also come under scrutiny amid allegations of financial mismanagement. The Joint Opposition filed a complaint with the Commission to Investigate Allegations of Bribery or Corruption regarding an alleged US$ 11 million diesel procurement irregularity involving the Ceylon Petroleum Corporation (CPC).

The complaint claims that irregular transactions resulted in significant financial losses to the state.

“An unsolicited tender has been awarded to Trafigura Pte Ltd in March this year, where the company has agreed to supply 248,000 barrels at a premium of $ 45 per barrel. Meanwhile, another company has offered to supply oil at a premium of $ 38 per barrel, the written complaint signed by former Ministers Professor G. L. Peiris, Patali Champika Ranawaka, Mahinda Amaraweera, Lasantha Alagiyawanna and others, including Sugeeshwara Bandara, and United National Party (UNP) General Secretary Thalatha Athukorala.

Rs. 380 Million irregularity in RDA payments

Samagi Jana Balawegaya (SJB) Parliamentarian Nalin Bandara has raised serious allegations regarding a financial irregularity involving over Rs. 380 million within the Road Development Authority (RDA). According to the Parliamentarian, the issue centers around payments made to contractors in the Batticaloa District.

Bandara alleged that payments originally made to contractors in 2023 were duplicated through this online system recently. "Exactly the same amounts paid for contracts in 2023 have been paid again by mistake, totaling over 380 million rupees," he said.

RDA denies allegations of Rs. 380 Mn double-payment

The Road Development Authority (RDA) has issued a formal clarification strongly refuting allegations made by Member of Parliament Nalin Bandara regarding a purported financial irregularity involving over Rs. 380 million. The authority dismissed the claims circulating on social media as "false, misleading, and entirely baseless."

In a statement, the RDA management clarified that no such "double-payment" to contractors has occurred. The authority said that its financial records confirm no duplicate transactions were processed from its accounts and that the institution has not suffered any financial loss as claimed by the Parliamentarian.

Rs. 263 million erroneously remitted to contractors

Despite the government's refusal of the allegations of the Road Development Authority (RDA) payments being duplicated, Sri Lanka Podujana Peramuna (SLPP) MP Namal Rajapaksa said a Bank of Ceylon ‘Recall of Funds’ notice confirms that Rs. 263 million was erroneously remitted to contractors due to a ‘system error.’

"A Bank of Ceylon ‘Recall of Funds’ notice confirms that Rs. 263 million was erroneously remitted to contractors due to a "system error." Over Rs. 51 million is still missing," he said.