2026-02-20 / Adjournment Motion: Coal procurement for Lakvijaya Power Plant at Norochcholai (Part 2) 2026-02-20
## Summary
Minister Pannilage delivered a government defence speech rejecting an Opposition no-confidence or censure motion concerning the procurement of coal, characterising it as politically motivated and built on factual errors. He argued that the tender specification changes cited by the Opposition occurred in 2023 under the previous government, not under the current NPP administration, and that those changes were beneficial, increasing registered suppliers from 10 to 26 and thereby enhancing competition. The Minister defended the procurement process as compliant with the national procurement framework, noting the tender was open for 28 days, and cited historical precedent for quality deviation penalties—referencing figures of US$4.54 million, US$6.1 million, and US$7.8 million in successive prior years—to argue that the approximately US$2.1 million in penalties imposed in the current tender reflects normal regulatory practice rather than mismanagement. He rejected Opposition claims that any losses would be passed on to electricity consumers, asserting the tender process remains ongoing and that penalty funds are recovered by the Ceylon Electricity Board.
Hon. Presiding Member, from this morning the Opposition has brought a motion built on fabrications and baseless assumptions, and they themselves are divided and contradicting each other while speaking to it. The public has been listening since morning and understand that the Opposition is trying to throw mud to cover up what they themselves did when they were in office for years.
This motion is entirely without foundation. Our Ministers and Members on the government side have clearly shown that. The Opposition just wants something to latch onto because they know why the public rejected them. They are trying to say even this government of the National People’s Power is like their governments were. The President and even some of their own leaders told them many times: if you want to regain power you must present a better program. Unable to do that, they shout and make false declarations here.
They claim our government changed the specifications of the coal tender. I’m saddened that an Opposition MP even mixed up “observations” and “recommendations”—in haste, even learned Members confuse them. Do not act on observations; it is recommendations that are implemented.
What report are they citing? Not one from our time. They rely on a report dated 30 September 2022 to claim we changed specifications. We did not. Hon. Presiding Member, we changed the specifications in 2023, having considered the recommendations of that 2022 report; and this tender was awarded on those 2023 specifications. There were no changes to specifications during the 2024 Presidential election or the 2024 Parliamentary election period or afterwards under the NPP government’s tenure.
We all know who held power in 2023. Those who held power then changed specifications with some positive outcomes: the number of registered suppliers increased from 10 to 26, increasing competition. Everyone with basic knowledge knows that more competition benefits the public. Yet the Opposition is spreading an outright falsehood that we changed the specifications.
They also said the Cabinet decides procurement. We know how Cabinets decided in their times. Today, even with a two–thirds majority, we do not misuse power. There is a procurement commission and tender process under the national procurement framework. In the past, coal was procured in 10 days without any proper tender. That is not how it should be done. We gave 28 days for this tender—21 days initially and then an additional seven days—following the proper process.
On coal quality: coal is a natural resource. There is an accepted international and domestically approved method to determine quality, not whatever we fancy. Primarily, gross calorific value per kilogram—typically between 5,900 and 6,150 kcal/kg—is the accepted range, and this tender followed that. Where there is deviation, penalties are levied. This is not new. In 2020–2021, US$4.54 million was levied as penalties for deviations; in 2021–2022, US$6.1 million; in 2022–2023, US$7.8 million. If there were no standards and processes, why would such penalties be imposed? Likewise this time, around US$2.1 million in penalties have been imposed.
The Opposition also claims any loss from this tender will be added to electricity tariffs. This is yet another attempt to incite the public. Those claims about economic collapse and loss of international standing have all been disproved. The economy is recovering; people are experiencing stability. With nothing else left, they now try to invent another “April crisis” and are waiting for failure.
On Norochcholai, since 2011 the coal quality has had a permissible range, with penalties collected when deviations occur. If the Opposition says such deviations then led to tariff hikes, they are only speaking of what they themselves did. This tender process is not yet concluded. Where coal is below spec, penalties have been levied—just as in history. Those funds flow back to the CEB and the country; there is no basis for the Opposition’s myth of “losses” being loaded onto tariffs.