Energy crisis if coal tender cancelled, Govt weighs options

By Kelum Bandara 

The country is slated to face an energy crisis if the current coal tender is cancelled over the low quality supplies, an official said.

The Ceylon Electricity Board (CEB) is currently weighing options to be looked in case the tender is cancelled.

A top official of the CEB told Daily Mirror that the emergency purchases of 300 tonnes of coal is one option under consideration in case there is a shortage in coal availability for power generation.

He said that the CEB had consulted the Attorney General on the current tender .

The  coal import is mired in controversy over the low quality supplies. The  Norochcholai Lakvijaya Power Plant is the  country’s largest coal-fired power station, which generates roughly 40–50 per cent of national electricity.

The dispute erupted over the tender process for coal imports, with opposition politicians and energy sector trade unions alleging serious irregularities.

They say that standard international procurement procedures were altered — including shortening the tender period and relaxing technical qualification criteria for bidders, limiting competition and potentially favouring selected suppliers. Critics argue that such deviations undermined transparency in a sector critical to national energy security.

Laboratory tests reportedly showed that several shipments had calorific values below the stipulated requirement and higher ash content than permitted. Lower-grade coal reduces generation efficiency, meaning the plant must burn more fuel to produce the same amount of electricity. Engineers warned that sustained use of such coal could increase maintenance costs and place stress on boiler systems.

The opposition says that the losses are estimated in billions of rupees when factoring in efficiency losses, penalties, and potential long-term equipment damage.

There are also fears that higher generation costs may ultimately be passed on to consumers through electricity tariff adjustments.

The matter has triggered political backlash, complaints to anti-corruption authorities, and calls for a forensic audit of the procurement process. The government has denied deliberate wrongdoing.