• Opposition warns of favouritism, procurement delays, risk of power cuts
• Power Ministry insists process is transparent and within procedure

Amid mounting controversy, the Ministry of Energy yesterday (23) confirmed that the recently floated long-term coal tender to procure 2.25 million MT of coal for 2025/’26 would not be cancelled and would proceed as planned.

The move comes despite allegations from Opposition MP D.V. Chanaka, who last week accused the Government of preparing the ground to grant unfair advantages to a specific supplier.

Addressing Parliament, MP Chanaka noted that the standard coal procurement process generally spanned six weeks. 

A recent Cabinet decision had already cut this period to five weeks. However, he claimed that attempts were now underway to complete the entire procedure in just three weeks with approval from the National Procurement Commission.

“This accelerated process appears to be tailored to benefit a supplier who already has coal in stock,” the MP alleged.

Chanaka further revealed that the Chairman of Lanka Coal Company Ltd. had been untraceable for several days after being asked to sign a purchasing order. 

“The Chairman has now submitted his resignation,” he added.

He alleged that the Government was bypassing internationally recognised tender procedures to favour one supplier. 

Rejecting the accusations, Ministry of Energy Secretary Prof. Udayanga Hemapala insisted that there was no irregularity. “There is no reason for cancelling as we have followed the correct procedure,” he said.

The Lanka Coal Company had earlier confirmed to The Sunday Morning that the new tender would be floated by mid-August.

The 2024/’25 tender officially closed on 8 July last year after multiple extensions, with coal stocks at the Norochcholai plant reported sufficient only until January. 

By the end of July this year, about 15 shipments remained under the existing long-term contract. Current reserves are expected to run out by November, and even with pending shipments, supply will last only until January 2026.

The Norochcholai Coal Power Plant, which generates nearly 900 MW – about 40% of Sri Lanka’s total electricity – has been undergoing rolling maintenance, further straining grid stability. 

On 13 June, the third generator was taken offline for 25 days, removing 300 MW from the system. Once it is restored, the first generator will be shut down, ensuring partial outages continue at least until November.

In mid-July, the Cabinet approved the appointment of a tender committee to oversee the process.

Meanwhile, the Frontline Socialist Party (FSP) also raised concerns.

Addressing the media in Nugegoda, FSP Education Secretary Pubudu Jayagoda also alleged that the shortened tender window had been deliberately designed to benefit pre-selected parties.

“The Government justifies this on grounds of an emergency but has failed to explain what that emergency is,” he said.

Jayagoda warned that the tender delay – announced in August instead of the usual February–March period – would push shipments to November, heightening the risk of shortages.

“This could force Sri Lanka to buy coal at higher spot market prices, leading to increased electricity costs for consumers. If rainfall fails during October or November, power cuts are also likely,” he cautioned.