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Sri Lanka Faces Allegations of Substandard Coal Imports and Massive Losses

Former Energy Minister Patali Champika Ranawaka claims corruption and financial mismanagement behind recent coal shipments to Norochcholai Lakvijaya Power Plant.

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Lakvijaya Coal Power Plant

Sri Lanka is grappling with a fresh controversy in its energy sector after former Minister of Power and Energy Patali Champika Ranawaka revealed that two laboratory tests at the  Norochcholai Lakvijaya Power Plant failed to detect coal samples imported into the country. The revelation points to possible corruption and mismanagement, with the government allegedly bearing losses of Rs. 700 million due to substandard coal shipments.

Ranawaka stated that the investigation report prepared by the coal company responsible for the transaction is scheduled to be released imminently, which could shed light on the decision-making and procurement process. The former minister criticized the tender process, alleging that the responsible minister had made considerable efforts to award the supply order to the company in question, suggesting serious corruption behind the contract. He emphasized that the financial burden could have been avoided had the agreed-upon quality coal been imported.

Further scrutiny has been applied by the Sectoral Oversight Committee on Infrastructure and Strategic Development, chaired by MP Marikkar, which extensively discussed the matter. According to committee sources, the new coal stock was sent directly to the boiler and burned even before quality test results were received, despite the power plant already holding older coal stocks of verified high quality.

The committee chairman instructed officials to launch an immediate inquiry into the decision to burn the coal prematurely. The directive aims to determine why the plant proceeded without waiting for laboratory confirmation, raising questions about operational oversight and accountability within Sri Lanka’s energy sector.

The unfolding situation has ignited public and political concern over transparency, governance, and the management of strategic energy resources in Sri Lanka, particularly as the country relies heavily on imported coal for its power generation. Observers warn that improper procurement and the use of substandard materials could have long-term implications for the stability of the national grid and the broader economy.

The upcoming release of the investigation report is expected to provide more details on the extent of the losses, the parties responsible, and any corrective measures to prevent similar incidents in the future. Meanwhile, calls for greater oversight and stricter adherence to procurement standards are mounting among lawmakers and civil society groups.

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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