2026-02-20 / Adjournment Motion: Coal procurement for Lakvijaya Power Plant at Norochcholai (Part 2) 2026-02-20
## Summary
Hon. Dr. Najith Indika defended the government's coal procurement tender process against opposition allegations of a "scam," arguing that the tender resulted in a bid Rs. 10 billion lower than previous prices and represented a transparent improvement over the prior administration's practice of awarding contracts by Cabinet approval to a single company without open bidding for three consecutive years (2023–2025).
He rejected opposition claims that the tender would cause a 10% tariff increase, stating that the CEB's formal submission to the PUCSL for any tariff revision makes no reference to "coal fraud," and contrasted this with what he characterised as a 400% tariff increase under the previous government. He outlined the government's plan to reduce tariffs by one-third over three years through cost reductions and renewable energy expansion, citing falling solar and battery storage unit costs achieved through competitive tendering.
The speaker challenged opposition members who alleged funds were transferred to a family member of the Minister to formally table account details in Parliament, warning against misuse of parliamentary privilege, and alleged that the previous Cabinet-approved sole-supplier contracts were connected to a company linked to Yoshitha Rajapaksa.
Hon. Presiding Member, this debate was brought as a postponement motion alleging a coal tender “scam.” The tender in question followed a process over two to three years with open competitive bidding and an award. If below-spec coal arrives, we act accordingly. In the past three years—2023, 2024, 2025—awards were made to a single company by Cabinet approval without open tenders. This time, we called a tender; a bidder offered Rs. 10 billion less; that was accepted—good for the country. If so, why oppose tenders now?
They claim this will raise tariffs by 10%. The CEB’s request to the PUCSL for any revision sets out the reasons; “coal fraud” is not among them. Do not lie. They increased tariffs by 400% then; now they cry about 10% on concocted grounds.
We are on track to reduce tariffs by one-third over three years by cutting costs and expanding renewables: solar unit costs have been brought down from Rs. 36 to Rs. 17; a project once set at Rs. 24 for one company can now be done at Rs. 12 by another through competitive tender. Battery storage costs have also been reduced. This Government is executing a clear plan towards cheaper, renewable power. Yet they pile lie upon lie and wave papers.
Some in the Opposition claimed money went into the Minister’s wife’s mother’s bank account. If so, table the account numbers and names. Otherwise, stop abusing privilege and running to the media with voice cuts to agitate society.
An Hon. Member from the SLPP spoke with passion—fair enough. But for three years tenders were not called; awards by Cabinet went to a company connected to a classmate of Yoshitha Rajapaksa—this company was also discussed earlier over the Ondansetron drug issue.