:Sri Lanka’s coal procurement process, long plagued by allegations of irregularities, has once again come under scrutiny as the Ministry of Energy (MOE) recently issued an amended tender to purchase 4.5 million metric tonnes (MT) of coal on behalf of the Lanka Coal Company (LCC). The revised tender follows years of controversy surrounding previous coal imports for the Lakvijaya Power Plant in Norochcholai.
Opposition MP D.V. Chanaka, raising the matter in Parliament yesterday, alleged that the government is preparing the ground to facilitate unfair gains for a specific coal supplier.
He claimed that while the internationally recognized procurement process allows a six-week timeframe for tender submissions, a Cabinet decision had already reduced this to five weeks.
According to him, fresh attempts are now being made to complete the process within just three weeks, with approval from the National Tender Commission.
“This accelerated timeline appears to benefit a supplier who already holds stock, giving them a clear and unfair advantage,” Chanaka told Parliament. He also revealed that the Chairman of the Lanka Coal Company had gone untraceable for several days when requested to sign purchase orders, only to later submit his resignation.
The Opposition MP accused the government of bypassing established tender procedures, charging that the move undermines transparency and opens the door for corruption. “This is a deliberate attempt to manipulate the procurement system for the benefit of one party,” he alleged.
The MOE’s Standing Cabinet Appointed Procurement Committee has since invited sealed bids for the supply of coal for the 2025/26 and 2026/27 periods. Several amendments have been made to the bidding documents initially issued in August 2024.
The earlier tender—intended to secure 2.25 million MT for 2024/25 and 2025/26—was repeatedly extended before finally being cancelled. The revised tender has now set March 6, 2025, as the new deadline for submissions.
The Auditor General’s Department had previously flagged serious procedural lapses in coal procurement, particularly regarding the 2022–2025 contract awarded to Black Sand Commodities FZ LLC. That contract, covering 38 shipments, is nearing completion, with 31 consignments already unloaded and around 700,000 MT of coal in stock.
The Committee on Public Finance, then chaired by Dr. Harsha de Silva, had recommended disciplinary action against officials involved, citing violations of procurement guidelines.
Meanwhile, fresh criticism has emerged from the Front Line Socialist Party (FLSP). Its Education Secretary, Pubudu Jagoda, addressing the media in Nugegoda, alleged that the shortened tender period is designed to advantage pre-selected parties. “The government justifies this on grounds of an emergency but has failed to explain what that emergency is,” he said.
Jagoda warned that the delay in issuing the tender—announced in August instead of the usual February–March—would delay shipments until November, potentially creating a shortage. “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.
He further alleged that the irregularities could benefit private diesel power operators and accused the government of steering the tender toward Panacape, a company linked to businessman Ruwan Fernando.
“This is not merely corruption but a betrayal of political ethics. The entire power sector is being placed at risk for the benefit of one individual,” Jagoda charged, calling for urgent clarification and investigation into the process.
