2026-02-20 / Adjournment Motion: Coal procurement for Lakvijaya Power Plant at Norochcholai (Part 2) 2026-02-20
## Summary
Hon. Ruwan Wijeweera defended the coal procurement process for the Lakvijaya power plant against allegations of irregularities, asserting that the tender was conducted in full legal compliance with strong competitive participation — 26 registered bidders, 11 participants, and 10 submitted bids meeting all pre-qualification criteria. He argued that the 28-day bidding period was approved by the National Procurement Commission, no appeals were lodged during the 14-day appeal window, and all evaluation committees followed due process in accordance with Auditor-General recommendations, including revised experience thresholds introduced in 2023. Regarding a quality dispute, he confirmed that a USD 2.1 million penalty was imposed on the first shipment after an accredited laboratory in India found it below the minimum 5,900 kcal/kg GCV threshold, noting that the Lakvijaya facility itself is not an accredited testing laboratory. He concluded by referencing Sri Lanka's improved Corruption Perceptions Index ranking (from 121 to 107) and international recognition of the Government's anti-corruption efforts, including a statement from IMF Managing Director Kristalina Georgieva, to counter broader allegations of misconduct.
Hon. Presiding Member, today we debate coal procurement for Lakvijaya and power generation there, based on suppositions and incorrect information.
This tender saw the highest recent participation: 26 registered, 11 took part, and 10 submitted bids. Pre-qualifications were met: more than three years’ experience, at least 0.5 million tons supplied in that period, and financial strength of USD 150 million. Legal standing was also acceptable. Allegations that the supplier was not registered or unqualified are false.
On timelines: the National Procurement Commission approved a 21-day bidding period; suppliers requested more time, so an additional seven days were granted—28 days total—followed by a 14-day appeal period. Not a single appeal was lodged. If there had been misconduct, someone would have appealed.
All factors—financial capacity, experience, and quality—were evaluated by the Bid Opening Committee, Bid Evaluation Committee, and Procurement Committee in full compliance with the law. There is no evidence otherwise.
Auditor-General’s recommendations were followed. The 2022 report asked to reduce the three-year experience threshold from 1 million tons to 0.5 million and to relax certain conditions to enhance competition. That was done in 2023. However, the GCV condition—minimum 5,900 kcal/kg within a 5,900–6,150 band—remained applied.
Coal is a natural resource; it is not made in a factory, hence ranges are specified. Within 5,900–6,150 kcal/kg there is no issue; if below 5,900, double penalties apply. The first shipment had a GCV issue; a USD 2.1 million fine was imposed.
On testing: Load Port Reports for all shipments showed no issues as per international norms. The Lakvijaya lab is not an accredited lab; therefore, samples are tested at an accredited lab in India, and we accept those results. Based on the accredited report, the first shipment failed, hence the fine.
On corruption: Sri Lanka’s Corruption Perceptions Index ranking has improved to 107 in 2024 from 121 the year before. The Government is recognized as fighting corruption. Verité Research’s “Mood of the Nation” poll reflects public acceptance that the Government is acting against corruption. IMF Managing Director Kristalina Georgieva said, “For the first time there is a Government that is trusted by the people and is doing their part to gain that trust… there has to be trust in the civil service, and that means corruption has to be eliminated.”