Sri Lanka's Energy Minister Resigns On Coal Import Issue

Sri Lanka's Minister for Power and Energy Kumara Jayakodi resigned on Friday soon after a high-powered Presidential Commission was announced to probe a state-owned entity's coal imports for power generation.

The government, however, stressed that no loss had been caused to the state by the substandard coal imports as alleged by the opposition.

Jayakodi, who survived a 'No Trust' vote last week, is the first resignation of the National People's Power (NPP) government since it was elected in late 2024 on an anti-corruption platform.

Along with Jayakodi, Ministry's Secretary Udayanga Hemapala too resigned from the post, President Anura Kumara Dissanayake’s office said.

According to the President’s Media Division (PMD), the move is to facilitate an independent investigation by the Special Presidential Commission appointed to probe matters related to coal imports, it said.

“They resigned to make way for an impartial investigation. The two resignations are meant to facilitate a fair inquiry as they will not be able to interfere,” Foreign minister Vijitha Herath told reporters.

The Commission report would be submitted to the president in six months, Herath said.

Defending Jayakodi, senior minister Bimal Rathnayaka told reporters here, “There is no loss to the state, the company may have lost. But the cost of the loss would not be transferred to electricity consumers.”

Earlier in the day, Sri Lanka appointed the high-powered Presidential Commission to probe Lanka Coal Ltd from the time coal came to be imported for power generation going back decades until April 16, 2026, a release from the President's Office said.

The Lanka Coal Company (Pvt) Limited was established in 2008 to procure and supply coal for thermal power generation following a decision taken by the Cabinet of Ministers in 2006 and registered under the Companies Act, No 7 of 2007.

The Commission was appointed as per the provisions of Section 2 of the Special Presidential Commissions of Inquiry Act No 07 of 1978, as amended by the Special Presidential Commissions of Inquiry (Special Provisions) Act No 04 of 1978, the release said.

The Lanka Coal offices were sealed by the police for a few days last week before reopening.

The presidential probe would investigate if coal imports had caused a loss to the state, if the accepted procurement procedures had not been adhered to.

The announcement of the probe commission follows a police complaint lodged by Dissanayake’s secretary last week urging an investigation into coal imports by Lanka Coal during past years, apparently as a reaction to the opposition moving the 'No Trust' motion in parliament against Jayakodi.

Sri Lanka is 100 per cent coal import dependent. Official data shows it imports on an average about 2.5 million tonnes a year of coal from Indonesia, South Africa, Australia apart from a small quantity from India.

Jayakodi became the first NPP minister to face a 'No Trust' motion, but survived on the strength of sheer parliamentary numbers enjoyed by the NPP to soundly defeat it 153-49 on April 10.

In the no trust motion moved by the opposition, Jayakodi was accused of causing a massive loss to the state on purchasing coal, endangering national energy security by misappropriating the state procurement process.

Speaking during the debate, Prime Minister Harini Amarasuriya said the opposition was unable to prove any accusation against the minister.

Jayakodi defended his action saying he and his party was strictly committed to preserving the anti-corruption principles of the NPP government.

He has already been indicted by the Bribery and Corruption Commission for misconduct in his previous job in the State Fertiliser Corporation.

While the opposition charged that the government had committed irregularities in coal imports by importing sub standard coal causing heavy financial losses, the government’s defence was that no corruption occurred in importing coal.

The motion alleged irregularities in coal imports and cited an Audit report which had pointed out anomalies in the procurement process.

The opposition demanded that Jayakodi must resign.

- With inputs from PTI.