The Public Utilities Commission of Sri Lanka has issued a detailed report warning that the country could face significant disruptions to electricity generation in April, June, and July 2026 due to the import of substandard coal. The report, recently submitted to the Sectoral Oversight Committee on Infrastructure and Strategic Development of Parliament, highlights critical operational, financial, and environmental risks stemming from nine coal shipments supplied to the Lakvijaya Coal Power Plant by Trident Chefar Limited.
Under normal conditions, the Commission notes, electricity demand in April, June, and July could push the system close to its limits, with projected peak demands of 3,030 MW, 3,070 MW, and 3,000 MW respectively. The highest night-time demand recorded so far in 2026 reached 2,949 MW on February 25, suggesting that any additional strain could expose vulnerabilities in the system. The report emphasizes that even a temporary shutdown of one power plant or a reduction in output at a major generating unit could leave the country unable to meet night peak demand, particularly during these critical months.
The Lakvijaya Power Plant, situated in Norocholai, is at the center of the crisis. According to the report, the plant has been unable to operate at full capacity due to the inferior quality of coal from the current supplier. Laboratory tests revealed that the Gross Calorific Value (GCV) of certain shipments was significantly lower than reported—Shipment 3, for instance, had a GCV of just 4,805 kCal/kg, far below the 5,904 kCal/kg indicated in load port documentation. This discrepancy has reduced average generation capacity per unit from 300 MW to as low as 257 MW in Shipment 8 and 260 MW in Shipment 9, while specific coal consumption has risen from 364 g/kWh to 452 g/kWh in the most recent shipments.
The operational challenges have forced the plant to operate outside safe technical parameters. Steam temperature limits, prescribed not to exceed 551°C for more than 400 hours per year, were breached repeatedly. To manage these excess temperatures, desuperheating valves frequently reached full capacity, and in extreme cases, the plant resorted to steam venting, which directly reduces generation output and efficiency. The high ash content of the coal, combined with extreme operating temperatures, has raised serious concerns over accelerated wear on boilers and other critical equipment, threatening the long-term reliability of the plant.
Financially, the impact has been substantial. The report estimates a cumulative loss of approximately 8,497 million LKR due to increased coal consumption and the need to purchase replacement electricity from other facilities, such as the KCCP 2 power plant, at rates of 65.04 LKR per kWh. Environmentally, the use of substandard coal has caused average fly ash emissions to double, rising from 0.046 kg/kWh to 0.093 kg/kWh, while emissions of sulfur dioxide (SO₂) and nitrogen oxides (NOx) in some cases surged by over 400%. Despite these increases, the plant has remained within the limits set by its Environmental Protection License, although the report warns that ongoing operational shortcuts could jeopardize compliance.
Compounding the problem are significant delays in coal shipments. The report notes that ship arrivals are already running about three weeks behind schedule. If these delays continue, between two and five shipments may not be unloaded before the end of the season in mid-May. This scenario could deplete coal stocks much sooner than anticipated: if three shipments are missed, reserves will only last until September 10, 2026, and if five shipments are missed, stocks could be exhausted by August 27, 2026. Even if all 25 scheduled shipments arrive, current coal supplies are sufficient to operate the plant only until October 2, 2026.
The report underscores the broader risk to Sri Lanka’s national grid. Any reduction in Lakvijaya’s capacity—whether due to safety measures, equipment limitations, or poor coal quality—could trigger a shortage of generation capacity during night peak demand periods in April, June, and July. These months are particularly sensitive because electricity demand is expected to approach or exceed 3,000 MW. A failure to address the coal quality issue could therefore lead to scheduled or unscheduled power cuts, affecting both households and businesses across the country.
The Public Utilities Commission also raised concerns about procedural compliance, noting that coal has been fed directly into the plant before completion of required quality verification tests. This practice could violate Environmental Protection License conditions and exacerbate both operational and environmental risks.
