Sri Lanka’s energy administration has been shaken by the resignation of the chairman of Lanka Coal Company, with his departure letter alleging undue interference in coal procurement processes and prompting renewed scrutiny of governance within key state institutions.
The letter, released to the public by former minister Champika Ranawaka via social media, outlines claims that the tender process for importing coal had been influenced by external interventions, particularly from within the Power Ministry. The disclosure has sparked debate among policymakers, analysts, and civil society groups about accountability and transparency in the management of strategic national resources.
Coal imports play a critical role in sustaining Sri Lanka’s thermal power generation, especially during periods when hydropower output is insufficient. As a result, procurement decisions tied to coal supply are closely linked to the stability of the national grid, making any allegations of irregularities highly sensitive both economically and politically.
In his resignation letter, the former chairman stated that he had accepted the position with the sincere intention of rooting out corruption and contributing to national progress. He emphasized that he had not previously engaged in political activity before his recent association with National People’s Power, and that he entered the role motivated by a desire to serve the country rather than personal or political interests.
However, he wrote that his efforts failed to produce the positive outcomes he had anticipated. According to the letter, he observed that key operational decisions were not made collectively through the company’s established governance structure, but were instead determined by a group led by Udayanga Hemapala and others who, he claimed, acted according to their own requirements and preferences.
The outgoing chairman asserted that, under such circumstances, neither he nor the company’s board of directors could be held responsible for any consequences arising from the tender procedures in question. This statement has drawn attention from governance experts, who say it reflects a potential erosion of institutional authority within state-owned enterprises.
The allegations come at a time when Sri Lanka is striving to strengthen financial discipline and restore confidence in public sector management following its recent economic crisis. International observers and local watchdogs have repeatedly emphasized the need for transparent procurement systems to prevent financial leakages and ensure efficient use of public funds.
Energy economists warn that uncertainty in procurement processes could have practical consequences beyond administrative disputes. Delays, legal challenges, or loss of supplier confidence could disrupt coal shipments, potentially affecting electricity generation and increasing costs at a time when the country is seeking to stabilize tariffs and maintain reliable supply.
The public release of the resignation has also added a political dimension to the controversy. Analysts suggest the move signals broader tensions over how reform should be implemented within state institutions, particularly those managing high-value international contracts. Calls have emerged from civil society organizations for an independent review to clarify whether established tender guidelines were followed and to identify any structural weaknesses.
While authorities have yet to provide a detailed official response to the claims, the issue is expected to intensify discussions on strengthening oversight mechanisms, clarifying lines of authority, and ensuring that procurement decisions remain insulated from undue influence.
