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Sri Lanka loses Rs.7.5 bn due to coal tender irregularities: FSP

Published

3 months ago

2026/01/12

Pubudu

The NPP government’s coal procurement process has once again come under scrutiny following allegations by the Frontline Socialist Party (FSP) that substandard coal has been imported for power generation and that tender procedures were manipulated to favour a specific supplier.

Addressing the media after a party meeting in Maharagama on Saturday, FSP Education Secretary Pubudu Jagoda said a test report issued by the government laboratory at the Lakvijaya Power Plant had confirmed that the latest coal shipment unloaded in Sri Lanka did not meet the required quality standards. According to the report, the coal’s calorific value ranged between 5,600 and 5,800 kilocalories per kilo, below the 5,900–6,200 kCal/kg range specified in tender requirements.

Jagoda warned that lower calorific value coal would require higher volumes to generate the same amount of electricity, increasing costs significantly. Preliminary estimates, he said, indicated an additional financial burden of around Rs. 7,500 million, which might eventually be passed on to consumers through higher electricity tariffs.

The FSP also accused the government of tailoring procurement rules to benefit the Indian supplier, which has deposited bonds for long-term coal supply for the upcoming season. Jagoda alleged that tender conditions had been altered to accommodate the company, pointing to changes in coal reserve requirements. Under the 2021 Sri Lanka Coal Registration Document, suppliers were required to maintain a minimum reserve of one million metric tonnes with a gross calorific value of 5,900 kCal/kg. This threshold, he said, had been reduced to 100,000 metric tonnes in the 2025 document which is a 90% reduction raising serious concerns.

He further cited past allegations against the Indian company, including findings in a 2016 Auditor General’s report that the company violated procurement guidelines regarding a rice supply contract with Sathosa in 2014. Jagoda also referred to legal issues involving individuals linked to the company, and the suspension of a representative by the International Cricket Council in 2019 over match-fixing allegations.

Beyond company-specific concerns, Jagoda criticised what he described as systemic manipulation of the coal tender process. He questioned why the coal tender, typically called in February or March, was delayed until July, despite electricity being declared an essential service. He also alleged that the tender submission period had been progressively shortened from the internationally accepted six weeks to five weeks, and now reportedly to three giving an unfair advantage to suppliers with existing stock.

The Ministry of Energy has recently issued an amended tender to procure 4.5 million metric tonnes of coal for the Lanka Coal Company for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender.

Jagoda warned that delays and irregularities could lead to coal shortages, higher spot market purchases, increased electricity costs, and even power cuts if hydropower generation falls short. He called for urgent investigations into the procurement process, insisting that the burden of alleged mismanagement and corruption must not be transferred to the public.

by Chaminda Silva ✍️

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Latest News

Heat Index at Caution Level in the Northern, North-central, North-western, Western, Sabaragamuwa, Eastern and Southern provinces and in Monaragala district

Published

13 hours ago

2026/04/16

Priyan

Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 15 April 2026, valid for 16 April 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, North-western, Western, Sabaragamuwa, Eastern
and Southern provinces and in Monaragala district.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491

Latest News

Indonesian Navy Sailing Ship KRI BIMA SUCI – 945 makes port call in Colombo

Published

18 hours ago

2026/04/15

Priyan

The Indonesian Navy Sailing Ship KRI BIMA SUCI – 945 arrived at the Port of Colombo on a goodwill visit on 15 Apr 2026 and was welcomed by the Sri Lanka Navy (SLN) in compliance with time-honoured naval traditions.

The vessel’s arrival is a key highlight of the ASEAN Plus Cadet Sail (APCS) – 2026 programme , accompanying a diverse contingent of Navy cadets from 26 different nations alongside their Indonesian counterparts.

The ship is commanded by Commander SUGENG HARIYANTO. Meanwhile, Officer Under-trainees of the Sri Lanka Navy are expected to participate in various programmes aboard the
ship and naval personnel observe its operational functions during its stay in the island.

Furthermore, the ship’s crew is scheduled to take part in programmes organized by the Sri Lanka Navy to enhance camaraderie between the two navies, as well as visit several tourist attractions in the country.

News

PM initiates children into learning at the auspicious time while observing New Year traditional customs and rituals

Published

18 hours ago

2026/04/15

Priyan

The Sinhala and Tamil New Year cultural festival, organized by the Ministry of Buddha Sasana, Religious and Cultural Affairs, was held on Tuesday (14) in Gampaha under the patronage of Prime Minister Dr. Harini Amarasuriya, with the performance of traditional auspicious customs and rituals.

In accordance with tradition, during the Punya Kalaya (inauspicious time), the Prime Minister visited the Medagama Sri Sunandarama Viharaya in Gampaha and participated in religious observances and received blessings from Venerable Thunmodara Samitha Thero, a member of the Karaka Sangha Sabha of the Sri Lanka Ramanna Maha Nikaya and the Chief Incumbent of the Medagama Sri Sunandarama Dharmaduta Piriven Viharaya.

The traditional observances of the Sinhala and Tamil New Year cultural festival were held at the residence of Darshana Weerasinghe in Gampaha. Marking the auspicious time for commencing work, and upon the invitation of the host family, the Prime Minister planted a sapling within the premises. Concurrently, Minister of Buddha Sasana, Religious and Cultural Affairs, Dr. Hiniduma Sunil Senevi, and Minister of Foreign Affairs and Tourism, Vijitha Herath, joined the PM.

Subsequently, the Prime Minister joined children in engaging in traditional folk games.

At the auspicious time for engaging work and educational activities, the PM participated with children in reading and writing, guiding them and symbolically marking the commitment to advancing the educational development of the nation’s children.

Thereafter, the Prime Minister and other distinguished guests observed the traditional customs of exchanging greetings, transactions and gifts with the host family, and joined them to partake in the customary New Year meal.

Extending New Year greetings to all citizens, the Prime Minister expressed her gratitude to all Sri Lankans, both at home and abroad, for their contributions in overcoming and effectively managing the various challenges faced by the country.

Speaking at the occasion, Minister Dr. Hiniduma Sunil Senevi stated that the Sinhala and Tamil New Year festival symbolizes renewal and purity, and reflects the energy of the sun. He also conveyed his wishes for a peaceful and prosperous New Year for all.

The occasion was attended by the Deputy Minister of Finance and Planning and Minister of Labour, Dr. Anil Jayantha; Deputy Minister of Labour, Mahinda Jayasinghe; Member of Parliament for the Gampaha District, Ruwan Mapalagama; along with the Gampaha District Secretary, Mayor, Divisional Secretaries, and a large number of government officials.

(Prime Minister’s Media Division)