• 2nd shipment unloaded last week
• Results expected 16 Jan.

Amid growing controversy over coal imports for the Lakvijaya (Norochcholai) Power Plant, sealed samples from a recently unloaded 60,000 MT of coal shipped from South Africa by the newest Indian coal supplier have been sent to India’s Cotecna, a testing, inspection, and certification services provider, according to the Lanka Coal Company (LCC).

Speaking to The Sunday Morning, LCC General Manager Namal Hewage said that Cotecna was an internationally accredited laboratory and that the samples had been dispatched with the consent of specialists at the Norochcholai power plant.

“A representative from Cotecna arrived in Sri Lanka last week and collected the samples required for testing in the presence of power plant officials. The sealed samples were then sent from the power plant to the laboratory in India,” he explained.

He added that the entire process had been carried out with the agreement of power plant authorities.

Meanwhile, The Sunday Morning reliably learns that despite lingering doubts over the first consignment, a second shipment of 60,000 MT of coal has already been unloaded. However, sources at the power plant said the second consignment was of better quality than the first.

When questioned about the grounds on which power plant officials conducted testing on the newly unloaded coal while stocks from the previous supplier were still available for power generation, a source stressed that officials bore responsibility for all coal unloaded prior to its use for power generation.

“The officials are free to conduct tests on the goods they receive,” the source added.

The LCC expects the test results from India to be received on Friday (16).

Meanwhile, Hewage told The Sunday Morning: “We expect the test results to arrive next week. Even if there is a delay, it would only be by one or two days. 

“Coal testing is not like finished product testing, as coal is a natural resource. Therefore, a single sample test cannot rule out any quality issues. Comprehensive tests must be conducted, with several samples examined before reaching a conclusion. Cotecna has collected the required samples and sent them to their laboratory. We are now awaiting the test results.”

As reported by The Sunday Morning last week, the LCC has yet to make payments for the shipment as it awaits the Discharge Port Certificate. The new supplier, selected after months of delays, is contracted to deliver 25 coal consignments under a tender finalised late last year. 

Concerns emerged after the Load Port Certificate showed a low calorific value, raising fears of reduced power generation efficiency and financial losses. Ceylon Electricity Board (CEB) sources claim that about 117 MT of the new coal would generate only around 285 MWh of electricity, compared to 300 MWh generated from 107–109 MT of previous Russian coal, indicating a decline in operational efficiency.

In the meantime, Opposition MP D.V. Chanaka alleged in Parliament last week that the loss from low-quality coal amounted to Rs. 10 billion.

In response to the allegation levelled by MP Chanaka, Minister of Energy Kumara Jayakody issued a statement about the quality of coal supplied to the Lakvijaya Power Plant.

The Minister stated that the first shipment of coal delivered under the current procurement process, by Indian supplier Trident Chemphar, had been procured in accordance with tender conditions outlined in Clauses 5.1 and 5.2 of the agreement. These conditions specify a calorific value range of 5,900–6,150 kcal/kg, along with stipulated moisture limits.

The shipment, consisting of approximately 60,000 MT, had been loaded at Richards Bay Coal Terminal (RBCT) in South Africa. However, the Minister noted that certain loading conditions had not been fully met. As a result, the LCC had not approved the release of 80% of the payment, which would normally be issued through a Letter of Acceptance once all conditions are satisfied.

Explaining the technical implications, the Minister highlighted that the calorific value was a key parameter in coal quality, as it determined the amount of energy produced. Any reduction in calorific value directly affects power generation efficiency. Under Clause 5.6 of the agreement, coal supplied outside the specified limits is subject to penalties at double the prescribed rate.

Preliminary sample tests conducted at the Lakvijaya Power Plant laboratory recorded calorific values of 5,689, 5,739, 5,760, and 5,430 kcal/kg – figures that fall below the required range. However, the Minister clarified that these results could not be used for contractual decisions, as the power plant laboratory was not accredited for this specific test. Final determinations will be based solely on results from an accredited laboratory named in the procurement order.

Minister Jayakody stressed that the Government would not accept or act upon any shipment status report unless it had been formally approved through proper procedures. He said that neither suppliers nor any other parties could bypass these requirements and assured that all relevant coal shipment status reports would be reviewed strictly in line with contractual and regulatory standards.

At the end of last year, the LCC finalised its long-term coal procurement for the upcoming season, with bonds deposited by the suppliers.