• Regulator notes financial impact of sub-standard coal
• Energy Ministry denies reports of possible power cuts

The Public Utilities Commission of Sri Lanka (PUCSL) has in a recent report warned that if the supply of coal by the current supplier to the Ceylon Electricity Board (CEB) experiences delays similar to those faced by previous shipments, there is a likelihood that several shipments may not be able to be unloaded before rough seas in April-May shut the supply chain till December.

The regulator has raised concerns that if several shipments are not unloaded, the stock of coal for the Norochcholai power plant may only be adequate for power generation until the end of August or early September this year. 

The regulator has also pointed out that as per CEB data, one or two of the power generation units (from a total of three) at the Lakvijaya Power Plant will be down for over three weeks for scheduled maintenance as well, pointing to reduction in power generation.

However, the Ministry of Energy has denied reports circulating in some media outlets claiming that problems with coal supplies to the Lakvijaya Power Plant could lead to power cuts in the coming months.

In a statement issued yesterday (7), the ministry said it had observed misleading and inaccurate news suggesting that several issues had arisen regarding the coal supply to the Lakvijaya Power Plant and that power outages may occur by April.

The ministry clarified that the power plant was currently operating normally and that coal supplies remained stable.

According to the statement, 22 out of the 36 coal ships ordered for the Norochcholai power plant have already been unloaded. The coal supplier has also assured authorities that the remaining shipments will be delivered without interruption, ensuring a continuous supply for power generation.

The ministry further stated that preliminary arrangements had already been made to secure emergency coal supplies if required, and that sufficient fuel oil stocks were available for electricity generation until the end of April.

Given these measures, the Energy Ministry emphasised that there was no risk of power cuts as reported and urged the public and media organisations not to be misled by false or inaccurate information regarding the country’s electricity supply.

The PUCSL’s warning of a potential power shortage in the country is based on operational issues caused by coal supplied by Trident Chemphar Ltd. to the Lakvijaya Power Plant.

The report on generator performance and financial impact due to use of coal supplied by Trident Chemphar at the Lakvijaya Power Plant has analysed the performance of coal supplied between December 2025 and February this year and its impact on power generation and financial costs.

According to the report, the Lakvijaya Power Plant has been unable to operate at its full generation capacity while using the coal supplied by the current supplier. Previously, each unit of the plant generated about 300 MW, but with the recent coal shipments the average output has dropped to around 257–292 MW, the report states.

The report also states that the coal consumption rate has increased compared to coal used from the previous supplier, rising from about 109 MT per hour to around 114–117 MT per hour, indicating reduced efficiency in power generation.

Laboratory tests conducted at the Lakvijaya Power Plant further show that the calorific value of the coal is lower than expected. As a result, more coal must be burnt to produce electricity, increasing operational costs. The report also notes that fly ash discharge has doubled when using the current supplier’s coal, rising from about 0.046 kg/kWh to around 0.093 kg/kWh.

The PUCSL report estimates that the first nine shipments of coal from the current supplier have caused an estimated financial loss of about Rs. 8.5 billion due to higher coal consumption and the need to purchase additional electricity to compensate for the reduced generation capacity.

The report’s analysis also indicates that Sri Lanka may face a risk of power shortages during peak demand periods in April, June, and July, especially if a major power plant becomes unavailable due to maintenance or technical failures.

The report also highlights the need for close monitoring of coal quality, shipment schedules, and plant operations to ensure uninterrupted electricity supply in the country.