Sri Lanka’s long-term coal supply agreement with Trident Chemphar Ltd. will remain in force after the third shipment of coal reportedly cleared required quality standards, easing immediate concerns over supply disruptions, according to local media. The development has reduced the likelihood that authorities will trigger an emergency coal procurement process approved by the Cabinet last week.
According to local media reports, Ministry of Energy Secretary Prof. Udayanga Hemapala said preliminary findings shared by the state-run Lanka Coal Company indicated that the third consignment met the agreed specifications. He said there was no immediate need to proceed with emergency purchasing, adding that the official quality report for the shipment was expected to be released either late last week or shortly thereafter.
Prof. Hemapala was quoted as saying that if the third shipment is formally cleared, the fourth and fifth consignments are also expected to fall within acceptable quality limits. Under those circumstances, he said, the Lanka Coal Company would not be in a position to cancel the agreement with Trident Chemphar at this stage. Meanwhile, unloading operations for the sixth shipment are already under way.
The Cabinet last week approved contingency plans to procure 300,000 metric tonnes of coal through emergency channels if the long-term tender had to be suspended due to confirmed quality failures. However, officials have stressed that this option would only be exercised if a clear and unavoidable need arises.
The long-term tender was awarded to Trident Chemphar to supply 1.5 million metric tonnes of coal, with a margin of plus or minus 10%, for the period from December 2025 to April 2026. According to the Lanka Coal Company, six shipments had been unloaded by the end of last week, though quality assessment reports have so far been issued only for the first two consignments.
Inspection data cited by local media show that the first shipment recorded a dry basis ash content of 22.42% and a gross calorific value of 6,032 kilocalories per kilogram, while the second shipment showed an ash content of 16.67% and a higher calorific value of 6,535 kilocalories per kilogram. Under the tender specifications, coal is to be rejected if its calorific value falls below 5,900 kilocalories per kilogram, ash content exceeds 16%, or total moisture is above 16%.
Contract termination clauses allow the agreement to be cancelled if two separate shipments fall outside the permitted quality tolerance limits. The contract also provides for termination in cases of frequent or significant discrepancies between test results conducted at the load port and those carried out at the jetty. For now, officials say the latest findings support continuing with the existing supplier while awaiting the remaining quality reports.
