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Sri Lanka Rocked by Coal Scandal as Lab Report Flags Substandard Fuel at Major Power Plant

Opposition warns faulty imports could cost hundreds of millions and push higher electricity bills onto the public, raising fresh questions over corruption and procurement oversight.

1 min read
Lakvijaya Coal Power Plant

Sri Lanka’s energy sector has been thrust into renewed turmoil after detailed laboratory test results from the Lakvijaya Coal Power Plant revealed that recently imported coal fails to meet multiple technical standards set out in government tenders. The findings have intensified accusations of corruption, procurement manipulation, and potential financial losses that could ultimately be passed on to the public through higher electricity tariffs.

Frontline Socialist Party Education Secretary Pubudu Jayagoda said the inspection report, issued by the power plant’s own government laboratory, confirms that the coal’s calorific value is significantly below the required benchmark. While Sri Lanka’s tenders specify coal with an energy output of 5,900 to 6,200 kilocalories per kilogram, the tested samples ranged between 5,689 and 5,830 kilocalories per kilogram across multiple lots, with one conveyor belt sample recording as low as 5,739 kilocalories per kilogram. Jayagoda said this places the coal below even the minimum usable threshold for efficient power generation.

Lab report

The laboratory data also highlights other quality concerns. Total moisture content in the coal ranged from 9.15 to 11.26 percent, with surface moisture alone reaching as high as 8.39 percent in some samples. High moisture levels reduce combustion efficiency and increase the volume of coal required to generate electricity. Ash content, another key indicator of coal quality, was recorded between 20.48 and 21.56 percent, levels that contribute to operational inefficiencies, higher waste generation, and increased maintenance costs at the power plant.

Jayagoda warned that the combined impact of low calorific value, elevated moisture, and high ash content means Sri Lanka would need to burn substantially more coal to produce the same amount of power. He estimated that the additional coal purchases required could cost the country around 750 million rupees, a loss he said is likely to be transferred to households and businesses through higher electricity bills.

The opposition has also raised alarm over the supplier, a foreign-owned company previously accused of corruption and reportedly blacklisted in Sri Lanka for violating procurement conditions in earlier imports. Jayagoda questioned why tender conditions were allegedly altered to award the contract to the same company and criticised the Minister of Power and Energy for publicly undermining the credibility of the ministry’s own laboratory rather than addressing the findings.

He said that if authorities dispute the government lab’s results, they should wait for international laboratory reports expected shortly. However, he warned that if those independent tests confirm the same deficiencies, the government’s response would be a critical test of its anti-corruption stance. Jayagoda stressed that the public should not be forced to pay for losses stemming from flawed procurement decisions and called for full accountability.

Sri Lanka Guardian

The Sri Lanka Guardian is an online web portal founded in August 2007 by a group of concerned Sri Lankan citizens including journalists, activists, academics and retired civil servants. We are independent and non-profit. Email: editor@slguardian.org

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