Government Holds Line on Coal Deal despite Rising Opposition Fury

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By: Staff Writer

February 10, Colombo (LNW): The Government has chosen to stand its ground on the controversial long-term coal supply agreement with Trident Chemphar Ltd., defying mounting political pressure, expert warnings, and street protests over allegations of importing substandard coal.

Energy Ministry officials insist that the decision is driven by contractual obligations and technical assessments rather than political convenience. The move follows preliminary findings by the Lanka Coal Company (LCC) indicating that the third coal shipment complies with required quality specifications, weakening the opposition’s demand for immediate cancellation.

Energy Secretary Prof. Udayanga Hemapala said the Cabinet-approved emergency procurement of 300,000 metric tonnes would remain a contingency option. “Emergency procurement is not an automatic response. It will only be triggered if there is a clear technical failure,” he said, adding that the official quality report of the third shipment was expected shortly.

The long-term agreement covers the supply of 1.5 million metric tonnes of coal between December 2025 and April 2026. By last week, six shipments had already been unloaded, although quality reports have been officially released for only two consignments.

Inspection data from those shipments reveal uneven results. The first consignment recorded an ash content of 22.42%, exceeding tender limits, while maintaining a Gross Calorific Value (GCV) of 6,032 kcal/kg. The second shipment showed improved figures, with a GCV of 6,535 kcal/kg and ash content marginally above the 16% threshold.

Tender conditions stipulate rejection only if GCV falls below 5,900 kcal/kg, ash content exceeds 16%, or moisture levels rise above 16%. Contract termination is permitted only if two shipments fail to meet these criteria or if consistent discrepancies are found between load port and jetty test results.

Opposition parties argue that the Government is exploiting narrow technical loopholes. “This is not about legal thresholds alone; it’s about national energy security and long-term damage to power plants,” an opposition energy spokesperson said.

Despite criticism, officials warn that cancelling the contract prematurely could expose the State to costly arbitration and supply disruptions. For now, the Government appears determined to let contractual technicalities not political outragedecide the fate of the coal deal.

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