Government Rushes to AG as Tender Scandal Deepens

Sri Lanka may be staring at the possibility of another power crisis – not because of drought, not because of demand – but because the coal itself may not be good enough.

The Government is preparing to seek urgent advice from the Attorney General after multiple shipments of imported coal reportedly failed quality tests at the Lakvijaya coal power plant. Internal documentation shows that three consecutive consignments of South African coal — procured through India’s Trident Chemphar Ltd — registered Gross Calorific Values (GCV) significantly below required thresholds.

In power generation, that is not a technical footnote. It is the difference underperformance. between stable electricity and Lower GCV means less heat output. Less heat means less electricity. Less electricity means the grid tightens. Lakvijaya is not a marginal plant. It is a base-load anchor. If it under-delivers, the system feels it immediately. A total of 23 shipments have been purchased under the tender. If quality concerns extend beyond the first three, the exposure is substantial.

The Attorney General is expected to advise on possible legal recourse and whether the existing tender can be revisited. The Government is also reportedly considering measures to tighten transparency in future coal procurements amid allegations that the entire tender process may have been tainted.

That word — tainted — is not being used lightly.

If a procurement of this scale results in substandard fuel entering the country’s primary thermal plant, the implications move beyond accounting. They touch energy security.

Coal-fired generation fills the gaps when hydro dips and demand rises. If coal quality drops, output efficiency falls. The difference must be compensated — often through more expensive generation options.

Which ultimately means cost.

And cost eventually means tariffs or fiscal pressure.

Sri Lanka has only recently stabilised from an economic collapse where fuel, power and foreign exchange became intertwined crises. The public will not tolerate another episode triggered by procurement missteps. The Government now seeks legal advice.

The country seeks answers. If the coal does not burn hot enough, the political fallout may.