Lanka Coal Company Office to Reopen Amid CID Probe; PUCSL Rejects Passing Coal Quality Costs to Consumers

COLOMBO (News 1st); The sealed office of the Lanka Coal Company in Kohuwala is scheduled to be reopened the day after tomorrow. The Ministry of Energy stated that the Criminal Investigation Department (CID) will obtain the necessary files related to their ongoing investigation on that day. Following these procedures, the Ministry confirmed that the company's operations will resume as normal, emphasizing that the investigation has caused no disruption to power plant operations.

This investigation follows a formal complaint lodged by the Secretary to the President, Nandika Sanath Kumanayaka, regarding coal imports dating back to 2009. The CID took action to seal the office last evening and has since deployed a 24-hour security detail consisting of four police officers and two CID officials. The department noted that they are currently analyzing documents and conducting searches to gather evidence for the case.

In the midst of these legal proceedings, coal supply remains steady with the arrival of the 15th coal shipment. Unloading has already commenced for the vessel, which carries 60,000 metric tons of coal intended for the national grid.

Regarding electricity tariffs, the Public Utilities Commission of Sri Lanka (PUCSL) has unanimously decided not to charge consumers for additional costs incurred due to coal quality issues. This decision serves as a response to a request from the National System Operator, which sought a 15% tariff hike for the second quarter of 2026 to cover a Rs. 16 billion deficit in power generation.

It cited the prevailing dry weather, the situation in the Middle East, and the specific quality of coal as primary reasons for the requested increase. However, the PUCSL—which recently approved a 10% adjustment for the same period—reiterated that only fair and reasonable costs for generation, transmission, and distribution will be considered. The Commission emphasized that any "unfair" costs related to coal quality have been rejected in the past and will continue to be excluded from future tariff revisions.