- Allegations of tender irregularities
The Lanka Coal Company (LCC) has finalised its long-term coal procurement for the upcoming season, with bonds deposited by Indian supplier Trident Chemphar Ltd.
Speaking to The Sunday Morning, Ministry of Power and Energy Secretary Prof. Udayanga Hemapala stated that supply contracts had been awarded following Cabinet approval and confirmed that the bond money had been deposited by the company last week.
The tender process has, however, come under scrutiny.
In September, the Frontline Socialist Party (FSP) alleged that Sri Lanka’s latest coal import tender was marred by corruption.
FSP Education Secretary Pubudu Jayagoda claimed that procurement rules had been altered to favour Trident Chemphar, including a 90% reduction in the minimum coal reserve requirement. He also cited past allegations against the company and its owners.
Jayagoda argued that the Government had manipulated regulations surrounding essential services to suit private interests, undermining public welfare. He described the coal tender controversy as indicative of a broader network of corruption involving politicians, officials, and business entities.
Responding to the allegations, Hemapala stated that the procurement had been carried out in accordance with Government-approved guidelines and that the company was a registered supplier with the LCC.
The Standing High-Level Procurement Committee (SHLPC), on behalf of LCC, had invited sealed bids from registered suppliers for the supply of 1.5 million ±10% MT of coal for the period from December 2025 to April 2026. Bids were submitted by 10 a.m. on 8 September and opened the same day at the LCC office.
Nevertheless, sources close to the matter indicated that by November, remaining stocks were expected to last only until January 2026, even with 15 pending shipments from the previous long-term contract. Delays in initiating this year’s procurement process have added pressure on the coal supply.
The Norochcholai Coal Power Plant, which generates nearly 40% of Sri Lanka’s electricity, continues to operate under rolling maintenance. The third generator was offline for 25 days in June, reducing system stability during a period of limited coal availability.
Following months of inactivity, Cabinet approval to appoint a tender committee was only granted in October. The LCC has now resumed procurement, with a new tender for approximately 2.25 million MT of coal expected to cover two unloading seasons.