Power Consumers’ Association alleges large-scale corruption in coal procurement
16-Feb-2026.
The Power Consumers’ Association has accused authorities of orchestrating large-scale corruption in the country’s coal procurement process, claiming the alleged irregularities have caused losses of billions of rupees to both the Ceylon Electricity Board and electricity consumers.
Addressing a press conference on 14 February, General Secretary Sanjeeva Dhammika said the current procurement process lacks transparency and shows clear signs of manipulation. According to him, the standard 42-day bidding period has been reduced to 21 days, a move he described as deliberately designed to restrict competition and facilitate malpractice.
He further alleged that the bid security requirement had been reduced from USD 1 million to USD 100,000, enabling new bidders with close political connections to enter the process. He claimed this was part of a “planned scheme” to import substandard coal while enabling commissions to be collected.
Dhammika warned that the Ministry Secretary and Additional Secretaries who allegedly ignored Auditor General recommendations and assisted in producing misleading reports should be prepared to face imprisonment. Complaints have already been lodged with the Commission to Investigate Allegations of Bribery or Corruption, and legal action will continue, he said.
He claimed that losses exceeding Rs. 808 million had already been incurred from the first four coal shipments. Government claims of profit, he said, were “blatant falsehoods.” He added that poor-quality coal has significantly increased the quantity required to produce one unit of electricity at the Norochcholai Power Plant, reducing efficiency and increasing costs.
The association also warned of serious environmental impacts affecting residents in the Norochcholai area. Dhammika insisted compensation should be paid directly to affected communities rather than absorbed into the electricity board’s accounts. He also urged the Public Utilities Commission of Sri Lanka to take immediate legal action against parties violating power generation standards instead of merely issuing warnings.
He concluded by accusing the government of behaving like a business cartel, exploiting public funds to sustain a luxurious lifestyle.
