2026-02-20 / Adjournment Motion: Coal procurement for Lakvijaya Power Plant at Norochcholai (Part 2) 2026-02-20
## Summary
Hon. D. V. Chanaka alleged serious corruption and procurement irregularities in a coal tender, tabling two letters including a resignation letter in which he claims corruption allegations were withdrawn after presidential intervention. He challenged the Minister's claim that the tender delay was caused by coal ships arriving as late as 7 December, asserting that shipping records (laycan documents, also tabled) show the last ship arrived on 13 November.
Chanaka further alleged that the Minister violated procurement law by travelling to Russia on 15 October 2025 and meeting a bidder while the tender was in progress, subsequently attempting to increase the number of contracted ships from 10 to 16, before cancelling the additional ships when negotiations failed. He stated this resulted in no coal ships arriving for approximately seven weeks (7 November to 30 December), causing losses of Rs. 25 billion, and argued the tender should have been called in April but was delayed until September when it was converted into an emergency tender — a decision he attributed to ministerial postponement.
He also contended that the current tender agreement contained cancellation clauses triggered when ships fail to arrive on schedule, noting that contracted delivery targets for December, January, and February had all been missed, and claimed total losses from the tender amounted to Rs. 100 billion.
He said he had asked someone to resign, and that a second resignation letter came on 25 August, stating that all the corruption allegations were withdrawn and that he was ill and would therefore withdraw. After the President spoke, all the corruption allegations were taken away; he would not take responsibility; he was ill. I table both letters.
This is how corruption in that coal tender started.
Hon. Minister, do not come early morning and tell untruths. Give me an answer. You said the delay was because the last coal ship of the previous government arrived as late as 7 December. I have the laycan details of the ships. The last ship arrived on 13 November. Why are you misleading the House? Please answer. This morning you said, “Ships arrived up to 7 December; that is why the tender was delayed.” Why are you lying? The last ship arrived on 13 November. I also table that document.
[Expunged on the order of the Chair.]
The last ship arrived on 13 November. Do you know what happened? The Minister went to Russia and met that company on 15 October 2025. While a tender is in progress, a Minister cannot meet the relevant bidder. That is our country’s procurement law. As Minister you went to Russia and met the company at 1.00 p.m. They then agreed to increase the number of ships by five. You called the previous government corrupt, yet you increased the number of ships from 10 to 11, and then to 16. You were the one who registered that change.
[Expunged on the order of the Chair.]
When you could not clinch the deal in Russia, you came back and cancelled those five ships and cancelled the award that had been given. For one and a half months there were no ships: from 7 November to 30 December not a single coal ship came to Sri Lanka. Six ships went missing from the schedule. The loss from that is Rs. 25 billion. This is how corruption and fraud are done. The tender should have been called in April. Why was it delayed until September? What was the reason? Then it was made an “emergency tender.” How did it become an emergency? Officials have told us, “If this delay causes imprisonment of officials, we cannot proceed. We can only proceed if the Minister appoints a Cabinet Committee; the Minister kept postponing until August; that is why the tender could not be called.” That is what happened. The Chairman has said the Secretaries and Ministers of the Ministry must take responsibility.
Then the Ceylon Electricity Board said this had caused large losses. But today those here blame the previous government, saying it approved by Cabinet Paper. Hon. Minister, tenders are in any case awarded by Cabinet Papers. In 2023–2024 and 2024–2025 what happened? Normally Russian companies supply coal and fuel to Sri Lanka, India and China. When they supply, because of geopolitics, sanctions affect them. With sanctions it is hard for them to re-enter under a new registration process. Then we called the 2024–2025 tender. A proposal came to that tender at Rs. 10,000 million less. This was not from a Singapore company—its name is Swiss Singapore. They bring coal from South Africa. Their prices were the lowest in the tender. Another company to the same tender also proposed, “Due to sanctions, we can supply at Rs. 10,000 million less, with a quality product.” What happened finally? Advice was taken from the Attorney-General. On that advice, the earlier tender was implemented at Rs. 10,000 million less.
But what has happened in this tender? The loss alone is Rs. 100 billion. The Minister had ample opportunity to cancel this tender. I saw a government backbencher say it cannot be cancelled. Read this tender document; read this Agreement. The first condition is that if two ships do not arrive on time, it can be cancelled. Under this Agreement three ships had to arrive in December; only one came. Under this Agreement six ships had to arrive in January; only four came. Under this Agreement six ships must arrive in February—this month; only four are coming. That alone is enough to cancel it. Minister, if you had the will, there are enough grounds. Next, you were sent a report on the first vessel. It failed. Whether the lab was in India, Vietnam or Indonesia is not what matters. What matters is the test result: how much electricity this coal produces when burned. You and I both know these reports: one comes from Norochcholai and another from the National System Control Centre. According to the two final reports of the National System Control Centre, all that coal failed. I table the relevant documents.
Placed in the Library.
Those coal shipments cannot generate 900 MW; not even 810 MW. They generate around 600 MW. Some lots generate 650 MW; some 750 MW. If we try to cover that with diesel or furnace oil, it will cost Rs. 21 billion, Hon. Presiding Member. In addition, it will take about a month to set it up. If the plant is shut for a month and we try to replace that with diesel, it will cost Rs. 23 billion. There will be a coal shortage for one and a half months. By now 15 ships should have arrived; only 8 have arrived; five are delayed. To generate with diesel instead of the electricity from those five ships will cost Rs. 31 billion. So far losses from this tender alone are Rs. 75 billion. With that money we could have paid Rs. 40 per kilogram for every paddy farmer, or built four smart classrooms in every school in Sri Lanka, or carpeted 7,500 kilometres of roads. These are not our numbers—these are from CEB’s reports. These are also reports given by your own Ministry. Yet despite three violations of tender conditions, this government is still backing this company. The Minister says, “I am cool. I have no problem.” Yes, you are “cool,” you travel abroad, you are cool—but the people are to face a 10% electricity tariff hike, equal to Rs. 100 billion. The loss from this fraud is also Rs. 100 billion. The 10% hike is to recover the commissions and stolen money of this coal fraud. We will provide all information with evidence to Parliament, to the public, and to the Commission to Investigate Allegations of Bribery or Corruption. Thank you.