2026-02-20 / Adjournment Motion: Coal procurement for Lakvijaya Power Plant at Norochcholai (Part 2) 2026-02-20
The Minister defended the current government's procurement process for coal supply, arguing that proper procedures were followed through the procurement commission, in contrast to 2022 when a tender was allegedly awarded to an unregistered company via Cabinet approval. He provided details on the Lanka Coal Company (Private) Limited, incorporated in 2008 under the Companies Act, with shareholding distributed among the Ceylon Electricity Board (60%), Treasury (20%), Ports Authority (10%), and Ceylon Shipping Corporation (10%). The Minister referenced COPE scrutiny of coal procurement for the Lakvijaya power plant, noting that Noble Resources Limited supplied over 4.5 million metric tons of coal between 2010 and 2015, and indicated he was about to outline findings from that examination.
There is also criticism about the supplier. We understand why: for years some kept awarding to one supplier; this time that company did not get it. In 2022, to an unregistered company, using Cabinet approval, the tender was awarded. We did no such thing. We followed procurement commission procedures properly.
Let me also explain the Lanka Coal Company (Private) Limited. It was incorporated on 23 January 2008 under the Companies Act, No. 7 of 2007, pursuant to a Cabinet decision. Its shareholding is: 60% to the Ceylon Electricity Board; 20% to the Treasury; 10% to the Ports Authority; and 10% to Ceylon Shipping Corporation.
From 2009 to June 2016, procurement for the Lakvijaya power plant was discussed by the Committee on Public Enterprises (COPE) in 2020. Between 2010 and 2015, Noble Resources Limited supplied 4,583,670 metric tons of coal. COPE examined that and made observations. What was revealed?