The Cabinet of Ministers has approved the procurement of coal for the Norochcholai Lakvijaya Power Plant to meet requirements for the 2026/2027 period.

At its meeting on March 30, 2026, the Cabinet granted approval to secure 2.28 million metric tons of coal, ensuring uninterrupted supply and safeguarding national energy security. 

The National Procurement Commission authorized the selection of two suppliers following an international competitive bidding process, which attracted nine bids.

Based on recommendations from the High‑Level Standing Procurement Committee, the Cabinet endorsed the Minister of Power’s proposal to award contracts as follows:

• Aditya Birla Global Trading Singapore Pte. Ltd. – 70% share, amounting to 1.596 million metric tons
• Mohit Minerals Limited (India) – 30% share, amounting to 0.684 million metric tons

The move is expected to stabilize coal supplies for the Norochcholai plant and reinforce Sri Lanka’s energy security strategy. (Newswire) 

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The Presidential Commission of Inquiry appointed to investigate coal transactions will commence recording evidence tomorrow (July 1).

According to the state newspaper Dinamina, the Commission has received 28 complaints, with today marking the final date for complainants to submit detailed reports on the matters raised.

Commission Secretary D.V. Bandulasena said statements have already been recorded from more than 100 individuals, including several former Ministry Secretaries and other state officials.

President Anura Kumara Dissanayake established the full‑powered Commission to probe all coal transactions in the country. 

It is chaired by Supreme Court Judge Gihan Kulatunga, with Court of Appeal Judge Adithya Patabendige and High Court Judge Sanjeewa Somaratne serving as members. (Newswire)

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A complaint has been lodged with the Criminal Investigation Department (CID) calling for a formal investigation into coal imports to Sri Lanka since 2009, in light of concerns raised in audit reports and within Parliament regarding possible irregularities.

The complaint was submitted this morning (11) by the Secretary to the President, the President’s Media Division said.

The request for a probe follows emerging findings pointing to potential discrepancies in the procurement and importation of coal over the years. The investigation is expected to examine procedures, compliance, and any possible misconduct linked to coal imports during the period in question.

Yesterday, Leader of the House Minister Bimal Rathnayake told Parliament that the government will appoint a Presidential Commission comprising sitting Supreme Court judges to investigate coal procurements spanning from 2009 to 2025/26. (Newswire)

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President Anura Kumara Dissanayake today acknowledged that low-quality coal imports had affected electricity generation, but assured that any additional costs would not be passed on to consumers.

Speaking in Parliament, the President said some coal-powered units had failed to generate the expected output, noting that although each unit is expected to produce around 270 megawatts, output had fluctuated, with one unit producing 270 MW while another generated about 266 MW.

He further noted that although the coal power complex has a total capacity of 900 MW, only around 810 MW was being generated at times, partly due to coal quality issues rather than problems with the plants or procurement process.

The President explained that coal quality is assessed through laboratory testing, with 80% of payments made after initial verification and the remaining 20% released following further testing by an independent laboratory in India, which has been in use since 2023.

According to the President, three coal shipments had failed tests, while in other cases, despite laboratory clearance, system performance indicated that expected generation levels were not achieved.

He said penalties had been imposed on suppliers based on these findings, with some payments withheld, including portions of the remaining 20%, and in certain instances even part of the initial 80% payment.

Dissanayake added that the first shipment priced at USD 98 per tonne had effectively dropped to around USD 68 per tonne after penalties were imposed.

He stressed that any additional costs arising from low-quality coal would be recovered from the supplier companies and not passed on to electricity consumers, adding that legal action would be pursued if necessary. (Newswire)

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The Centre for Environmental Justice (CEJ) has raised concerns that recent coal consignments suspected to be of inferior quality may contain elevated mercury levels, posing risks to ecosystems and human health.

According to The Island newspaper, Chairperson of CEJ, environmental scientist Hemantha Withanage, environmentalists have cautioned that Sri Lanka still lacks binding standards on mercury content in imported coal, leaving communities near the Norochcholai coal power plant vulnerable to contamination.

“International studies show that mercury content in coal can vary significantly. For example, research on South African coal indicates a range between 0.01 and 0.49 ppm. However, Sri Lanka has still not established a maximum permissible mercury level for imported coal,” Withanage noted.

He explained that while the environmental protection licence for the Norochcholai plant allows mercury emissions of up to 0.01 mg/Nm³, regulating emissions alone is inadequate without controlling mercury levels at the source.

The CEJ believes mercury released during coal combustion at Norochcholai may enter the marine environment, eventually accumulating in fish consumed by local communities. 

“A 2018 CEJ study conducted in the Kalpitiya peninsula, near Puttalam, found alarming levels of mercury exposure among women of childbearing age.  According to the study, 28 out of 36 women, approximately 77%, had mercury levels in hair samples exceeding the internationally accepted safety threshold of 1 ppm. The most disturbing finding was a recorded level of 15.584 ppm in one individual. These women were regular consumers of fish from the Puttalam lagoon, suggesting a bioaccumulation pathway,” Withanage explained. 

He warned that mercury, a potent neurotoxin, can transform into methylmercury and enter the food chain, disproportionately affecting coastal and fishing populations.

Environmentalists are now urging urgent action, including the introduction of national standards for mercury content in imported coal, mandatory independent testing of all coal consignments, and comprehensive health assessments of communities living near the power plant. (Newswire)

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Minister Bimal Rathnayake acknowledged that substandard coal had been imported to Sri Lanka, revealing that the company responsible has paid fines up to US$ 2 million.

Addressing a public event, he said that the laboratory tests on the imported coal had proven substandard quality,  after which fines were imposed on the said company. 

He further said that coal tenders involve a complex tender process that must be handled carefully to maintain adequate stocks, adding that only fines could be imposed at this juncture. 

“I’m not justifying the mistake, but we don’t have a surplus of anything. We cannot change the company at this point, as the order procedure takes months. If the company says it is bankrupt because of an unreasonable fine, it will adversely affect our coal supply,” he added. (Newswire)

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Transparency International Sri Lanka (TISL) has formally requested information from multiple public authorities regarding the controversial procurement of coal for the Norochcholai Lakvijaya Power Plant. 

The move comes amid mounting public scrutiny, parliamentary inquiries, and allegations of irregularities in the tender process, coal quality, and oversight mechanisms. 

TISL’s intervention seeks certified documentation to clarify whether procurement standards were upheld, whether coal shipments met required specifications, and whether the process safeguarded public funds and accountability.

According to a TISL statement, the requests were submitted to key institutions involved in the procurement, oversight, and handling of coal shipments, including the Lanka Coal Company (LCC), Ministry of Energy, Ministry of Ports, Shipping and Aviation, and the National Procurement Commission. 

These requests seek to clarify accusations relating to the transparency of the tender process, procurement procedures, coal quality verification, financial transactions, and oversight mechanisms associated with the importation of coal. 

Concerns surrounding the coal procurement process have been widely reported and debated in recent months. In early 2025, it was reported that the Ministry of Energy would procure coal on behalf of the Lanka Coal Company, with amendments subsequently made to the bidding documents.

The amended tender was issued for the purchase of a large quantity of coal intended for electricity generation at the Norochcholai plant. However, the process has since attracted public scrutiny. 

Allegations were raised by political actors and civil society representatives regarding irregularities in the tender process, including claims that the tender submission period was shortened and that eligibility requirements may have been amended in ways that benefited particular suppliers.

Following the completion of the tender process in September 2025, further allegations emerged regarding the selected supplier and the quality of coal shipments supplied to Sri Lanka. It has been reported that multiple consignments of coal have already been delivered under the contract, with concerns raised about whether the coal supplied meets the required quality specifications. 

In January 2026, allegations surfaced that certain shipments were of inferior quality, prompting public debate about the potential financial and operational impact on electricity generation at the Norochcholai Power Plant. The Ministry of Energy later confirmed that an internal investigation had been initiated within the Ceylon Electricity Board, focusing primarily on operational and procedural issues related to document disclosures rather than the procurement process itself. 

The matter has since drawn the attention of several parliamentary oversight bodies. The Lanka Coal Company was summoned before the Parliamentary Sectoral Oversight Committee on Infrastructure and Strategic Development to provide clarification regarding coal shipments and quality assessments. Additionally, the Committee on Public Enterprises (COPE) has indicated that a comprehensive investigation will be conducted into the procurement process. 

In light of these developments, TISL seeks to obtain certified documentation relating to several critical aspects of the procurement process, including transparency of the tender process, evaluation and selection of the supplier, coal quality verification, financial transactions and penalties, oversight and investigations, and shipment and inspection records. 

TISL seeks to clarify whether the procurement adhered to established standards, whether quality verification procedures were properly followed, and whether any financial losses or risks to the electricity sector and the provision of public goods may have arisen. 

TISL therefore urges all relevant authorities to ensure timely and comprehensive disclosure of the requested information in accordance with the Right to Information Act. 

Stating that weaknesses in procurement oversight can undermine the effective use of public resources, the reliable provision of essential public goods and services, and accountability in governance, TISL called on the government to strengthen Sri Lanka’s public procurement framework, recognising that robust procurement systems are critical to safeguarding public funds and maintaining public trust. (Newswire)

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The Public Utilities Commission of Sri Lanka (PUCSL) has presented evidence confirming that the coal imported by the government from South Africa is of poor quality, Opposition Leader Sajith Premadasa said in a special statement today.

In a video message, he noted that the Samagi Jana Balawegaya (SJB) had repeatedly warned the government, the President, and the subject minister about the inferior quality of South African coal. 

The PUCSL’s latest report, comparing Russian and South African coal, has now reaffirmed these concerns, he said.

Premadasa explained that the report shows South African coal has failed to generate the full capacity required at the Lakvijaya power plant, and although the plant should produce 300 megawatts, the South African shipments have consistently fallen short.

“Even when looking at specific coal combustion values, the report shows that South African coal yields higher figures than Russian coal. Performance data from the Lakvijaya plant indicates that the required Gross Calorific Value (GCV) of 5900–6150 or 6200 could not be achieved. The report highlights that the Lakvijaya data is more reliable than the Loard Port and Dispatch reports, confirming the inferiority of South African coal,” he said. 

Premadasa further said that although the Ministry, the Ceylon Electricity Board (CEB), and even the subject minister rejected Lakvijaya’s findings, the PUCSL has accepted them and formally confirmed that South African coal is substandard. 

“Analysis of fly ash emissions shows that while Russian coal produces 0.46 kg of ash per kilowatt hour, South African coal produces 0.93 kg, an increase of 102%. This further proves the poor quality of the imported coal,” he said.

The Opposition leader pointed out that according to the PUCSL report, the loss from nine shipments amounts to Rs. 8,497 million.

“In addition, the high ash content has exceeded humidity limits, caused excessive strain on equipment, and risked boiler overheating, leading to potential damage. These findings confirm that the South African coal imported by the present government is substandard,” he stressed. 

Premadasa further highlighted that despite these findings, the government has initiated an emergency procurement process to import five more ships carrying 60,000 tonnes of coal. He stressed that this decision underscores the lack of quality in the coal supplied through the tender process.

The Opposition Leader concluded by stating that the government must now provide answers to the people, as the PUCSL’s analysis has formally confirmed the importation of substandard coal. (Newswire)

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Opposition Leader Sajith Premadasa has raised serious concerns over the Government’s importation of substandard coal, warning that it has led to inefficient electricity generation, increased equipment damage, and mounting financial losses for the country and its people.

In a video message, Premadasa said that with the opposition Samagi Jana Balawegaya party revealing information about the importation of substandard coal to our country, the responsible parties in the Government are now admitting before the public that this coal is of poor quality. 

He further said that the use of such coal has made electricity generation inefficient, and the tendency for equipment damage has increased. 

The amount of ash produced has doubled, rising from the required 11–15% to over 21%. Even the disposal of this ash causes environmental harm, the Opposition Leader said.

He went on to note that within the next 2–3 months, another 15–16 coal ships are expected to arrive. Since good-quality coal is not being imported, and substandard coal is being used, the megawatt output has decreased. 

To cover this shortfall, electricity has to be generated from fuel power plants, causing financial losses to the country, the Government, the people, and electricity consumers, he said.

Premadasa emphasized that under Section 30 of the 2009 Electricity Act, charges can only be levied from consumers through efficient electricity generation. Therefore, the Public Utilities Commission must safeguard the rights of electricity consumers. 

He stressed that the massive financial loss caused by inefficient generation due to substandard coal cannot be charged from the country’s 7.5 million electricity consumers.

Premadasa pointed out that the Government’s so-called “change in system” has, in fact, resulted in substandard coal. Placing the burden of losses caused by substandard coal on consumers is unlawful. The Government that promised change has now brought in corrupt, substandard coal deals, leaving the country and its people abandoned. He added that the money lost through this corrupt process could have been used to build schools, hospitals, provide relief to the poor, or even start new businesses.

The Opposition Leader insisted that what is needed is not a committee of experts but a forensic audit to investigate these corrupt transactions. 

He said the Samagi Jana Balawegaya stands to protect electricity consumers, and that the President and the Cabinet must take responsibility for the damage caused by using substandard coal at the Norochcholai power plant, which is a national asset. (Newswire)

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General Manager of Lanka Coal Company, Namal Hewage, stated that a fine of around USD 2.1 million has been imposed on a company responsible for supplying substandard coal.

He revealed this while addressing a special media briefing held at the Government Information Department today (28) regarding the controversial coal import issue.

He was responding to questions from journalists about concerns raised by former minister Patali Champika Ranawaka, stating that the losses to the state exceed the fines imposed in such instances.  

Hewage explained that samples of the coal were taken before experts at the Lakvijaya Power Plant and sent to India for testing.

However, he noted that reports on samples from the second shipment showed no issues. 

Hewage further added that the third and fourth vessels have already begun unloading.

He made the remarks in connection with the recent consignment of imported coal, which was deemed substandard. (Newswire)

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A group of Opposition MPs have joined a Parliamentary delegation to inspect the controversial coal consignment that recently arrived at the Norochcholai Coal Power Plant.

In a video message, opposition MP Ajith P. Perera said that the team has arrived at the Norochcholai Coal Power Plant on a fact-finding mission related to the controversial coal consignment. 

“There is an issue regarding the quality of the imported coal. Several issues stem from this substandard coal consignment, such as a reduction in the power generated and damage to the machinery, among others. The government has also acknowledged the issue. This is a serious issue as it relates to the security of the energy sector,” he said. 

MP Ajith P. Perera further said that the substandard coal has been imported due to alleged changes made to the importation conditions, adding that it was evident that regulations had been broken. 

Meanwhile, matters relating to coal imported to Sri Lanka for electricity generation were examined at the Sectoral Oversight Committee on Infrastructure and Strategic Development.

According to a Parliament statement, this review took place when the Committee met in Parliament recently under the Chairmanship of MP S. M. Marikkar. Officials from the Ministry of Power and Energy and the Lanka Coal Company (Private) Limited were summoned to attend the Committee meeting.

During the meeting, the Committee sought clarifications from officials regarding the procedures followed in the coal importation process. Particular attention was paid to the procedures adopted during the most recent coal imports, and officials were questioned in detail on this matter.

The Chairman of the Committee inquired whether any issues had arisen concerning the quality of the coal most recently imported into the country. In response, officials informed the Committee that samples from three coal vessels that arrived in Sri Lanka had been sent to India for quality testing, and that accurate information could be provided once the relevant reports were received.

Accordingly, the matter was discussed at length during the Committee proceedings. The Chairman stated that the former Chairman of Lanka Coal (Private) Limited, who was involved in the processes related to the importation of these coal consignments, would be summoned before the Committee at its next meeting.

In addition, the Chairman instructed officials to submit to the Committee, on the same day of the next meeting, the quality reports of the coal in the three vessels that arrived in Sri Lanka, as well as the laboratory reports conducted in Sri Lanka on the quality of coal contained in the most recently arrived vessel. (Newswire)

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