Audit reveals irregularities in coal procurement for Lakvijaya Power Plant
April 7, 2026 06:52 pm
A special audit report has uncovered multiple irregularities in the coal procurement process carried out by the Lanka Coal Company for the Lakvijaya Power Plant for the 2025/2026 season.
According to the report issued by the Auditor General, a controversial supplier, Trident Chemphar Ltd, had relied on laboratory reports from a loading port facility whose license had already been revoked.
The audit was conducted following a request by the Parliamentary Committee on Public Enterprises (COPE), which had raised concerns regarding procurement procedures and the quality of coal supplied to the Norochcholai Lakvijaya Power Plant.
The report further revealed that at the time bids were called, the selected supplier, Trident Company, had not completed its registration. Despite clear tender requirements stating that only fully registered suppliers could submit bids, three unregistered suppliers—including Trident—were allowed to participate in the process.
In terms of quality assurance, coal shipments are typically tested at both loading and unloading ports by independent inspectors. However, the audit found that coal sample testing at the loading port had been assigned to an Indonesian laboratory— PT Mitra SK Analisa Testama Samarinda —whose license had been cancelled by December 29, 2025.
Moreover, there was no evidence that the company’s license had been renewed even by March 31, 2026. Despite this, all 12 shipments received were certified using reports issued under this questionable arrangement through Mitra SK South Africa.
The report also highlighted discrepancies between test reports from the loading port and data recorded at the Lakvijaya Power Plant’s main control unit. Although the Lanka Coal Company had several alternative options to verify these inconsistencies, it had failed to utilize any of them.
Additionally, the audit pointed out serious lapses in supply planning. Although coal imports must be maximized during limited unloading periods in Sri Lanka, no shipments were procured during a critical 40-day window from November 13 to December 30, 2025.
As a result of insufficient shipments, an emergency procurement was carried out on March 18 this year. However, the selected supplier, Taranjot Resources (Pvt) Ltd., had previously failed—within a 36-month period—to supply coal meeting the required gross calorific value of 5,900 kilocalories or higher.
The Auditor General warned that such failures in timely procurement and quality assurance could pose a serious risk to maintaining uninterrupted power supply in the country if adequate coal stocks are not secured.
The full audit report has now been released by the National Audit Office.
Special Audit Report on Coal Procurement by Adaderana Online
