A heated dispute has emerged in Sri Lanka after former minister Patali Champika Ranawaka alleged that ten ships carrying substandard coal have already been imported in violation of tender conditions, with a further fifteen shipments expected to arrive in the coming months. He warned that the continued acceptance of such consignments could impose significant financial and technical burdens on the country’s energy sector.
According to Ranawaka, the coal is being supplied through the Indian company Iden, which he claimed lacks sufficient experience in handling large-scale coal procurement. He stated that although the firm secured the tender by underbidding competitors by about $1.50 per metric ton, it is allegedly making an illegal profit of nearly $30 per ton by delivering coal that does not meet required specifications. He accused authorities of concealing these details and called for the immediate cancellation of contracts awarded to suppliers that fail to comply with technical standards.
Ranawaka also linked the coal issue to the ongoing domestic gas shortage, claiming that procurement irregularities have directly affected supply stability. He raised concerns about the selection of the American company Geo Gas to provide gas until August 2026, noting that the tender’s technical evaluation required four smaller tankers to ensure a continuous supply. However, he alleged that only two vessels are currently in operation, making it difficult to meet the country’s estimated daily requirement of 1,300 metric tons.
He further suggested that undisclosed trade or security arrangements may have influenced the awarding of the contract, pointing to international policy dynamics associated with Donald Trump and potential conditions tied to tariff concessions and the purchase of American products.
The government has strongly rejected these allegations. Energy Minister Kumara Jayakody told Parliament that the coal tender was conducted according to internationally accepted methodology and insisted that no illegal activity had taken place. He stated that applications were called online, qualifications were reviewed transparently, and the process attracted 21 suppliers, with 10 submitting bids, making it one of the most competitive coal tenders in the country’s history.
Jayakody dismissed opposition claims as being based on false information and maintained that there had been no delays in coal shipments. He added that technical shutdowns at coal-fired power plants were linked to longstanding mechanical issues such as boiler tube leaks rather than the quality of recent imports, and emphasized that authorities retain the right to declare any supplier in default if contractual obligations are not met.
