Sri Lankan authorities seal state-run coal procurement firm's headquarters amid alleged irregularities

Colombo, Apr 12 (PTI) Sri Lankan authorities sealed the state-owned Lanka Coal Company's headquarters here amid accusations of supplying low-grade coal, causing massive losses to the island nation, officials said.
     The Crime Investigation Department (CID) sealed the office on Saturday following a complaint filed by President Anura Kumara Dissanayake's Secretary, demanding a probe into all coal imports for power generation since 2009.
     Security is deployed at the office premises, the officials said.
     Lanka Coal was formed in 2008 to procure and supply coal for thermal power generation.
     Coal remains Sri Lanka's most cost-effective power generation source, next to hydropower, which is more economical than thermal energy.
     Reduction in thermal power generation capacity causes tariff hikes, which will eventually impact the cost of living.
     An audit report on the imports had cited irregularities in procedures, such as changing tender deadlines and alleged favour to certain suppliers.
     Lanka Coal told a parliamentary committee that a supplier was earlier fined heavily for substandard supplies.

(This story has not been edited by THE WEEK and is auto-generated from PTI)