2026-02-20 / Adjournment Motion: Coal procurement for Lakvijaya Power Plant at Norochcholai (Part 2) 2026-02-20
Minister Jayatissa defended the current government's coal procurement process for the Norochcholai (Lakvijaya) Power Plant, contrasting it with what he characterised as a pattern under the Rajapaksa administration of repeatedly cancelling tenders mid-process and awarding contracts by Cabinet paper to a single preferred supplier, Noble Resources International. He outlined the 2025 procurement cycle, noting that 26 suppliers registered, 10 submitted bids within the extended 28-day window, and no appeals were lodged during the designated appeal period—arguing this demonstrated procedural legitimacy accepted by bidders themselves. He defended the quality assurance framework, citing Load Port Reports as the standard initial acceptance mechanism and detailing a penalty regime that has yielded progressively higher recoveries across recent cycles (USD 4.54 million, USD 6.1 million, and USD 7.8 million respectively). The Minister also dismissed allegations concerning a family member's bank account as unsubstantiated, and issued a warning to Opposition figures to cooperate with ongoing CID and FCID investigations rather than evading summons.
Hon. Presiding Member, the Norochcholai (Lakvijaya) Power Plant has for years figured in news—over alleged coal scams, equipment failures, and blackouts—creating a dark image across successive regimes.
Production began in February 2011, with electricity generation from July 2011. Although Sri Lanka does not mine coal domestically and must import, from 2009 onwards the pattern was: call a tender, cancel midway, and purchase via Cabinet decisions—repeatedly. Not once, but over the first five cycles. Time and again, tenders were called, aborted, and purchases made through Cabinet papers, often to the same company—Noble Resources International (Pvt.) Ltd. In 2015, when a proper tender proceeded, that long-favoured firm lost; they went to the Supreme Court and lost there as well. Under the Rajapaksa era, this was the formula: call tender, halt midstream, award repeatedly by Cabinet paper to a chosen supplier.
From 2016, tenders were called again; some were cancelled; spot tenders were used. For 2022/2023, the bid window was reduced from 42 to 21 days. Even then, the process was run according to proper procedure. In August 2025, we opened registration for international suppliers; 26 registered—a significant number, compared to the previous practice of a single preselected supplier. We initially provided 21 days (18 August to 8 September), and upon request extended to 15 September—28 days in all.
Ten bidders submitted proposals within the 28 days. If 28 days were insufficient, which company represented by the Opposition could not come in on time? Ten did. We also provided an appeal window from 19 to 29 September; not a single appeal was lodged. If the awardee was improper, others had the right to appeal. None did—meaning the process and timelines were accepted by the bidders themselves.
On quality assurance: name a method, anywhere in the world, other than the Load Port Report to initially accept cargo. If the Load Port Report certifies compliance (e.g. ≥ 5,900 kcal/kg), the cargo is provisionally accepted. Upon discharge in Sri Lanka, both Lanka Coal Company and the Lakvijaya laboratory test again. If the energy content is between 5,900 and 6,150 kcal/kg, it is within the band. If below 5,900, penalties apply—double penalties if under the floor. We have not invented anything new; we have applied the existing regime.
For 2020/2021, penalties imposed totalled USD 4.54 million; for 2021/2022, USD 6.1 million; for 2022/2023, USD 7.8 million—computed with reference to Port of Discharge test results, not just Load Port reports. Ten ships have arrived so far under the current cycle; Lanka Coal Company is proceeding accordingly.
The price gap between the first and second ranked bidders was USD 3.375 million. Much of the noise today is easily explained by looking at who came second. Those who never ran a single clean tender, who repeatedly awarded by Cabinet fiat, now challenge us for running a proper procurement and imposing penalties where warranted.
This debate began with wild claims about a bank account of the Minister’s wife’s mother at a named branch. If you know the branch and the name, table the account details. Their trick is to fling a lie and then demand we disprove it. Enough.
Another point: do not try to intimidate investigators. When CID, FCID, or Police call you for statements in ongoing inquiries, go and cooperate. Don’t suddenly fall ill. More cases will be filed as we expand court capacity. This Government will not shield any wrongdoer; institutions will act independently, and we will provide all facilitation. Tell your friends to turn up and answer; then the law will proceed swiftly.
Thank you.