By: Staff Writer

April 07, Colombo (LNW): Sri Lanka’s 2026 Governance Action Plan presents a tightly structured reform timeline aligned almost entirely with benchmarks set under the Extended Fund Facility of the International Monetary Fund. While the plan signals policy discipline and adherence to international expectations, critics argue it reflects a compliance-driven approach rather than a domestically crafted strategy for long-term transformation under the Janatha Vimukthi Peramuna-led National People’s Power government.

At its core, the plan prioritises structural reforms in procurement, State-Owned Enterprises (SOEs), and financial governance. The proposed Public Procurement Bill, scheduled for enactment by August 2026, aims to standardise and improve transparency in government contracting. This is reinforced by continued publication of high-value contracts and tax exemptions, a move widely seen as enhancing fiscal accountability and public trust.

Similarly, SOE restructuring anchored by the Public Commercial Business Management Bill targets improved efficiency through the creation of a central holding company. By October 2026, key entities are expected to be consolidated under this framework, potentially reducing fiscal burdens and inefficiencies that have historically plagued state enterprises.

The Employees’ Provident Fund (EPF) reforms also stand out, with a comprehensive review and policy recommendations due by September. These steps could strengthen governance and safeguard contributors’ funds, addressing longstanding concerns about transparency and investment practices.

However, the plan’s strengths also reveal its limitations. Nearly every reform milestone mirrors IMF technical guidance, raising concerns that the government has prioritised compliance over innovation. There is little evidence of original policy thinking tailored to Sri Lanka’s unique socio-economic context. Instead, the framework appears to replicate externally prescribed solutions without adapting them to local institutional realities.

For instance, while digitalisation initiatives such as the electronic procurement platform and land information systems—are commendable, their extended timelines into 2027 and 2028 suggest a lack of urgency in leveraging technology for immediate governance gains. Likewise, the introduction of a public-private partnership law and asset management legislation follows standard global templates, offering limited novelty in approach.

Anti-corruption measures, including the expansion of the Commission to Investigate Allegations of Bribery or Corruption and the implementation of a Proceeds of Crime framework, are important steps forward. Yet, their effectiveness will depend heavily on enforcement capacity rather than legislative intent—an area where past reforms have struggled.

Judicial improvements, such as additional commercial courts and enhanced case management, could ease systemic delays. Still, these reforms remain procedural and incremental, lacking a broader vision for justice sector transformation.

In sum, the 2026 Governance Action Plan demonstrates policy consistency and alignment with IMF conditions, which may stabilise macroeconomic fundamentals and reassure international stakeholders. However, its heavy reliance on externally driven frameworks underscores a deeper concern: the absence of bold, homegrown strategies to drive sustainable growth and institutional renewal. Without such innovation, the reforms risk being technically sound but strategically limited.

By: Staff Writer

April 07, Colombo (LNW): Sri Lanka’s power sector is once again under strain as ongoing issues in coal procurement threaten electricity generation in the coming months. The state-owned Lanka Coal Company (LCC), responsible for supplying coal to the Norochcholai power plant, is attempting to recover from a controversial procurement cycle that resulted in the delivery of substandard coal. The consequences of that failure are now unfolding, with concerns mounting over potential power cuts as the country approaches periods of higher electricity demand.

The Norochcholai coal power plant, which contributes a significant share of the national grid’s base load, depends heavily on consistent, high-quality coal supplies. However, the previous tender process allowed relatively inexperienced suppliers to participate, with lenient eligibility criteria that required only 500,000 metric tonnes (MT) of supply experience and minimal exposure to higher-grade coal. This opened the door to quality inconsistencies, ultimately leading to shipments that did not meet required calorific standards.

Coal quality, measured by Gross Calorific Value (GCV), is critical for efficient power generation. When coal falls below the expected GCV threshold, more fuel is required to produce the same amount of electricity, increasing operational costs and reducing plant efficiency. In severe cases, poor-quality coal can damage equipment or force temporary shutdowns, directly affecting power supply stability.

The current situation suggests that Sri Lanka may face electricity shortages within the coming months if supply disruptions persist. With coal deliveries already impacted by earlier procurement missteps, the power sector has limited buffer capacity. Hydropower output remains uncertain due to fluctuating weather conditions, while thermal alternatives are both expensive and logistically constrained.

In response, LCC has introduced a new tender for 2.28 million MT of coal for the 2026–27 season, aiming to restore credibility and ensure supply reliability. However, this corrective action comes at a critical time, as immediate shortages cannot be quickly resolved through long-term procurement adjustments. The gap between policy reform and actual delivery may leave the country vulnerable in the short term.

Energy analysts warn that unless contingency measures are implemented such as securing emergency fuel supplies or optimizing existing generation scheduled power cuts may become unavoidable. The situation highlights systemic weaknesses in procurement oversight, contract enforcement, and risk management within Sri Lanka’s energy sector.

Ultimately, the coal procurement crisis is not just a logistical issue but a governance challenge. Ensuring transparency, accountability, and technical rigor in future tenders will be essential to prevent a repeat of the current predicament. As the country braces for potential power disruptions, the urgency of reform has never been clearer.

April 07, Colombo (LNW): Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has formally instructed former President Mahinda Rajapaksa to submit a comprehensive declaration of his assets, expenditure, and income sources through a duly completed affidavit.

The commission noted that its initial request for this information dates back to December 14, 2015, meaning nearly a decade has elapsed without the required documentation being furnished. Officials confirmed that the affidavit remains outstanding despite the passage of time.

The request forms part of an ongoing inquiry launched in 2015 into the former president’s financial disclosures. Authorities have reiterated that the information sought is essential to advance the investigation and ensure compliance with legal requirements.

In its latest communication issued today, the commission has set a firm deadline of April 10, 2026 for the submission of the affidavit. It stressed that the document must be properly prepared and include full and accurate details relating to assets, spending, and sources of income.

The directive has been issued under the provisions of the Anti-Corruption Act No. 9 of 2023. Emphasising the prolonged delay, the commission made it clear that no further extensions will be entertained, signalling a more stringent approach to enforcement in this long-running case.