EconomyPoliticsHOT3h ago

Lakvijaya Power Plant Issues New Coal Tender Amidst Audit Findings of Past Procurement Irregularities

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Update #2\u00b7 Apr 8 · 9:01 AM

A special audit report by the National Audit Office has revealed further details regarding the coal procurement irregularities for the Lakvijaya Power Plant during the 2025/2026 season. The report, initiated following a notification from the COPE Committee, was submitted to Parliament yesterday (April 7th) by the Speaker. It highlights that the long-term coal supply tender for 1.5 million metric tons was awarded to India-based Trident Chemphar Limited, despite the company reportedly not having completed registration requirements when bids were called. Furthermore, the audit found that substandard coal was supplied, leading to financial losses and quality concerns.

The Lanka Coal Company (LCC) has initiated a tender process to secure 2.28 million metric tons of coal for the Norochcholai Lakvijaya Power Plant's 2026/2027 season, covering the period from September 2026 to April 2027. This development coincides with the release of a special audit report, requested by the Parliamentary Committee on Public Enterprises (COPE), detailing multiple irregularities in the LCC's coal procurement for the 2025/2026 season. The report by the Auditor General highlighted that a supplier, Trident Chemphar Ltd, utilized laboratory reports from a facility with a revoked license. Furthermore, the audit revealed that three suppliers, including the selected company, were permitted to bid despite having incomplete registration at the time of the tender invitation. The Auditor General's report was presented to Parliament on Tuesday, though Opposition MPs raised concerns about its distribution to members.

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