- LCC to call 2025/’26 bid only in mid-August
- Only 15 shipments left; stocks to last until Jan.
- 21 suppliers registered from 5 countries
- July ’25 total generation 49.10 GWh; coal 23.73%, hydro 25.10%
- Norochcholai provides 900 MW, 40% of power
Nearly two weeks after the previous year’s long-term coal tender closed, the Lanka Coal Company (LCC) is still scrambling to float the tender for 2025/’26, with officials now confirming it will only be called by mid-August – a move that risks a serious disruption to Sri Lanka’s coal-fired electricity supply in the coming months.
The 2024/’25 tender officially closed on 8 July last year after multiple extensions, but this year, the procurement process is yet to commence despite coal stockpiles being expected to run out by January.
As 15 shipments remain under the existing long-term tender, sources confirmed to The Sunday Morning that current coal reserves would be exhausted by November and even with the pending shipments, the supply would last only until January 2026.
The Norochcholai Coal Power Plant, which contributes nearly 900 MW – 40% of Sri Lanka’s total power generation – is under rolling maintenance, further straining grid stability.
The third generator was shut down on 13 June for a 25-day maintenance, removing 300 MW from the system. Once it returns, the first generator will be taken offline, continuing the partial outage through at least November.
Nevertheless, it was only last week that the Cabinet gave approval to appoint a tender committee, after months of silence. The LCC is now expected to call the tender by mid-August, which will be for the supply of 2.25 million MT of coal for two unloading seasons.
In contrast to previous years, the LCC is now adopting a 50/50 approach – securing half the annual requirement via the long-term tender, with the rest acquired through spot tenders.
On Friday (25), Sri Lanka’s total power generation reached 49.10 GWh, with thermal coal plants producing 11.65 GWh or 23.73% of the daily output, according to Ceylon Electricity Board (CEB) data. The Mahaweli Hydro Power Complex contributed the largest share at 12.32 GWh (25.10%), while the Laxapana and Samanala Hydro Complexes added another 14.7% and 6.25%, respectively.
Despite growth in renewable energy, coal remains a critical base load fuel.
In light of the current coal supply situation, LCC General Manager Namal Hewage stated that 15 shipments were still pending from the previous tender. He confirmed that the coal procurement process had now commenced, with a new tender expected to be floated by the middle of next month, covering the supply of approximately 2.25 million MT.
“Once deliveries begin, we will be bringing in coal every five days,” Hewage said, adding that this schedule would be sufficient to meet national demand for around five months, extending until January.
He also noted that the Norochcholai Power Plant, currently under maintenance until November, had adequate planned quantities in place to ensure continuous operation for the coming weeks.
According to the LCC, the procurement process begins with the CEB issuing the annual requirement, followed by quarterly planning. The Ceylon Shipping Corporation Ltd. (CSCL) and the supplier arrange vessel laycans, perform loading, and submit documentation. The LCC then coordinates Letter of Credit (LC) applications through Central Bank-licensed banks.
Once vessels arrive at Norochcholai anchorage, health and Customs checks are completed, coal is discharged, and documents – including insurance, survey reports, and invoices – are submitted for CEB payment release. Charges for lightering, port authority, and quality testing are reimbursed once funds are received.
Adjustments to the annual requirement are made by the CEB based on power plant performance, with updated shipping schedules related to suppliers accordingly.