Although the Cabinet has approved emergency coal procurement, the Lanka Coal Company has yet to issue tenders. The government has stated that the tender will be floated shortly, pending the final testing reports of the third and fourth coal shipments imported from South Africa.
Time is running out, as the coal unloading window at the Norochcholai Power Plant is set to close in early May. Even under emergency procedures, coal procurement typically requires 40–45 days to secure a vessel, load the cargo, and transport it to Sri Lanka. The Ministry of Energy confirmed that all registered suppliers are eligible to submit tenders.
Energy sector sources warn that further delays could lead to large stocks of substandard coal accumulating at Norochcholai, posing serious risks to power generation infrastructure, exacerbating generation shortfalls, and increasing reliance on costly oil-based power.
Ceylon Electricity Board (CEB) records show that on 21 and 22 January, when coal from Shipment 3 was used, combined generation from the country’s three coal-fired power plants reached only 715 MW, falling short of the expected 810 MW. The resulting 95 MW deficit was met through expensive oil-based generation. According to CEB reports, the shortfall was directly attributed to poor coal quality, with Shipment 3 performing worse than the previously rejected Shipment 1.
The Ministry of Power previously acknowledged that Shipment 1 failed to meet calorific value and ash content standards. Instead of rejection, the supplier was fined USD 2.1 million, allowing the coal to be used. Shipment 2 meets the minimum rejection standard of 5,900 kcal/kg but falls short of the expected 6,150 kcal/kg standard.
Observers monitoring coal use at CEB have noted a concerning trend: over the past five weeks, test runs with coal from the first four shipments consistently resulted in underperformance of the generators, each expected to deliver 270 MW. Coal from Shipment 4 caused a shortfall of 20–25 MW on 27 January.
The missing power has forced CEB to rely more on oil-based generation, significantly increasing operational costs. Sources further revealed that coal from Shipments 3 and 4 was unloaded simultaneously—a practice never previously implemented—raising concerns that the two shipments may have mixed. This could make it difficult to obtain accurate samples for definitive testing, further complicating quality assurance efforts.
