The coal tender that was awarded on 25 August was cancelled by the Cabinet yesterday, Minister of Energy Kanchana Wijesekera said.
The minister said that the tender was cancelled on a request made by the Ministry of Power and Energy.
The selected supplier has communicated the inability to perform the tender citing concerns about the impact on legal cases filed and payment guarantee risk.
Lanka Coal Company will publish a new International Open Competitive Tender that will allow any suitable supplier that has the ability to provide coal on a long-term credit basis, he said, in a message on Twitter.
Minister Kanchana Wijesekera added that the balance of 19 cargos from last year’s tender will be advanced in order to fulfill the immediate requirements.
Sri Lanka is facing an imminent shortage of coal which could push the nation into an electricity crisis once again.
The Public Utilities Commission of Sri Lanka says the nation is only in possession of sufficient stocks of coal until 28th October.
The Commission warned that if necessary stocks of coal are not purchased over the next few days, Sri Lanka will face extended daily power cuts of up to 10 hours.
Issues pertaining to the coal tender have delayed the purchase of necessary coal stocks, the Public Utilities Commission revealed. (NewsWire)