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Coal procurement controversy: Opposition may  seek ‘fraud, corruption’ debate

Coal procurement controversy: Opposition may seek ‘fraud, corruption’ debate

30 Jan 2026 | BY Buddhika Samaraweera


  • SJB calls for calculation of losses including machinery damages, addl. electricity gen. costs, environmental harm 


The main Opposition, the SJB Parliamentarian S.M. Marikkar said yesterday (29) the losses caused by the import of substandard coal for the Lakvijaya Coal Power Plant in Norochcholai must be fully calculated, including the damage to machinery, additional electricity generation costs, and environmental harm.


Speaking to the media, he said the Party had taken steps to expose the issue both in Parliament and outside, accusing the Government of attempting to cover up large-scale irregularities in the coal procurement process for 2026.


He alleged that serious fraud, corruption, and procedural violations had taken place since the coal procurement process was initiated. He pointed out the standard 42-day procurement period was reduced to 21 days, limiting competition and preventing many eligible companies from participating. He said that key qualification criteria were also diluted, including the requirement that a supplier must have imported 500,000 metric tonnes (MT) of coal over the past three years, which was reduced to 100,000 MTs to allow smaller companies to qualify.


He further said that to meet the national electricity demand, all three units of the Norochcholai Plant must operate continuously, requiring a full year’s coal supply to be imported within a six-month window. However, he claimed that proper quality assurance procedures were ignored, as Sri Lanka did not receive a quality report before the first coal shipment arrived at the Colombo Port. "Despite this, the coal was fed into the Plant’s boilers. The SJB revealed that the shipment did not meet the required 5,900 kilocalorie standard, a fact later accepted after reports were received from India, despite earlier claims by the Energy Minister that the coal was of acceptable quality."


He also said that although the Energy Ministry later announced that a fine would be imposed when the second coal shipment arrived, there was no clear disclosure of how the fine was calculated. He questioned whether the authorities had assessed the damage caused to Power Plant equipment, the additional cost of generating electricity through diesel power plants due to the reduced output, or the environmental damage caused by increased ash emissions. He also noted that under the agreement, the tender should be cancelled if any two of the 25 coal shipments are rejected, but, the Minister has insisted that imposing fines is sufficient.


Marikkar further raised concerns about a third coal shipment that has arrived in Sri Lanka but has not yet been unloaded, reportedly due to issues at the Port. He said that there were reports that the coal quality in this shipment was even worse than the first. He alleged that delays were intentional to prevent the tender from being cancelled if another substandard shipment is confirmed. Warning of possible power cuts after March, he said that continued reliance on poor-quality coal would limit the generation capacity and force the purchase of costly diesel power, thus burdening the public. He accused the Government of preparing for another major fraud through spot tenders at higher prices, claiming that a Government which promised not to steal “a single Rupee” had instead surpassed even past scandals in scale.


Meanwhile, speaking to The Daily Morning, the SJB General Secretary and Parliamentarian Ranjith Madduma Bandara said that they would decide whether to request a Parliamentary debate on the controversial coal procurement process during its' MPs' meeting on 2 February.


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