Writ petition claims Rs. 2.2 Bn loss from inferior coal imports

By Lakmal Sooriyagoda

The writ petition filed before the Court of Appeal over the alleged supply of substandard coal to the Lakvijaya Power Plant states that the country has incurred losses amounting to Rs. 2,237.7 million due to the importation of low-quality coal.  

Frontline Socialist Party Education Secretary Pubudu Jayagoda filed this writ petition seeking an order directing the relevant authorities to recover losses arising from the supply of substandard coal to the Lakvijaya Power Plant from the responsible suppliers.  

According to the petition, the estimated loss had been revealed in a report issued by the National Audit Office headed by the Auditor General.  

The petitioner also seeks an order preventing authorities from passing the financial burden caused by the low-quality coal onto electricity consumers through increased electricity tariffs.  

The petitioner has further requested the court to restrain the authorities from recovering the losses incurred due to the supply of inferior coal by imposing higher electricity charges on the public.  

The respondents named in the petition include Minister of Energy Aruna Karunathilake, Ministry Secretary G.M.R.D. Aponsu, Lanka Coal Company (Pvt) Ltd, National System Operator (Pvt) Ltd, Public Utilities Commission of Sri Lanka and the Attorney General’s Department.  

The petitioner states that invitations for bids were issued on 18 August 2025 to 26 suppliers registered with Lanka Coal Company (Pvt) Ltd for the supply of coal for the 2025/2026 period, and that 11 suppliers had submitted bids which were subsequently 

accepted for evaluation.  

The petition further states that the Bid Evaluation Committee had recommended the selection of Trident Chemphar Limited to supply 1.5 million metric tonnes ±10 per cent of coal for the 2025/2026 period after the company submitted the lowest CFR bid of USD 98.50 per metric tonne. The recommendation had reportedly been made on 17 September 2025.  

According to the petitioner, Cabinet approval for awarding the contract to Trident Chemphar Limited was granted on 27 October 2025 for the procurement of 1.5 million metric tonnes ±10 per cent of coal for the Lakvijaya Power Plant.  

The petition further states that a Rs. 22 billion letter of credit facility provided by the Treasury to facilitate coal imports for the 2025/2026 period had been extended until 22 October 2026 through Treasury Guarantee No. TO/REV/TG/335/12 dated 31 October 2025.   The petitioner alleges that the company had imported 12 coal shipments by 11 March 2026. However, concerns had arisen after the Gross Calorific Value of coal supplied in the first shipment had reportedly fallen below the rejected threshold level at the discharge port.  

The Petitioner states gross calorific value of the coal imported was not up to the required standard(6,150 kcal/kg) for the power plant, but was below the rejected level (5,900 kcal/kg), and thus power plant was not been able to generate the desired electricity capacity using the relevant coal.