National Audit Office Uncovers Billions in Losses and Operational Failures from Substandard Coal Procurement

The National Audit Office has published multiple reports highlighting substantial financial losses and severe operational challenges at the Lakvijaya (Norochcholai) Power Plant due to the procurement of substandard coal. One audit report identified an estimated loss of approximately LKR 2.24 billion from several coal shipments that failed to meet quality specifications. A separate special audit, investigating procurement from 2009 to June 2016, revealed an estimated loss of LKR 4.14 billion in the overall process. The imported coal, reportedly from South Africa by Trident Chemphar, did not adhere to plant standards, leading to the plant's three 300 MW units being unable to reach full capacity. This has resulted in frequent blockages in coal mills, machinery breakdowns, and fires, attributed to the coal's low calorific value and high content of hard mineral particles.