Cabinet Spokesman and Minister Nalinda Jayatissa stated that the coal procurement process was carried out in full compliance with established procurement guidelines, rejecting allegations raised by opposition lawmakers.
Addressing the weekly post-Cabinet media briefing, the Minister said the current coal tender was conducted through a formal procurement process and received approval from the relevant authorities, including the Procurement Commission.
He noted that 26 registered suppliers had obtained bidding documents, of which 10 submitted bids. An initial period of 21 days was granted for submissions and later extended to 28 days, followed by a designated appeals period. No appeals were filed by unsuccessful bidders.
“If there had been irregularities, the companies that were not awarded the tender would normally have submitted appeals. No such appeals were received,” he said.
Jayatissa explained that under the procurement procedure, a load port inspection report from a recognized laboratory is obtained before shipment acceptance. Only consignments with a calorific value above 5,900 kilocalories per kilogram (kcal/kg) are accepted.
Upon arrival in Sri Lanka, a discharge port inspection report is conducted through an internationally recognized laboratory. He said Cotecna had been selected through a procurement process for a two-year period to carry out these inspections.
According to the Minister, penalties are imposed if shipments fail to meet the specified calorific standards. A double penalty is charged if the value falls below 5,900 kcal/kg, while a single penalty applies for consignments between 5,900 and 6,150 kcal/kg. Shipments exceeding 6,150 kcal/kg are accepted without penalty.
He said 10 vessels have arrived so far, with eight fully unloaded and the remaining currently being discharged. Inspection reports have been received for six shipments.
The first shipment, comprising 59,831 metric tonnes, was found to be below the required standard, resulting in a penalty of approximately US$ 2.07 million. Additional penalties were imposed on other shipments: US$ 436,000 for the second, US$ 484,929 for the third, US$ 345,652 for the fourth, approximately US$ 500,192 for the fifth, and US$ 510,677 for the sixth.
Jayatissa further stated that in previous years, there had been instances where shipments were accepted without proper verification of load port and discharge port reports. However, he said enhanced verification measures have been introduced this year, including authentication of the Indian load port laboratory for the first time.
He added that a committee comprising experts from the University of Moratuwa and officials from the Ministry will be appointed to examine technical issues in the inspection reports and assess any potential losses. Steps have already been taken by the Secretary to the Ministry of Power and Energy to appoint the committee.
The Minister maintained that the current coal procurement process has adhered to the established legal and regulatory framework.