Wednesday Feb 25, 2026
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Cabinet Spokesman and Minister Dr. Nalinda Jayatissa
Cabinet Spokesman and Minister Dr. Nalinda Jayatissa yesterday defended the Government’s coal procurement process, insisting it was conducted in full compliance with established guidelines and approved by the relevant authorities.
Addressing the weekly post-Cabinet meeting media briefing, he rejected allegations raised by opposition lawmakers, stating that the current coal tender was carried out through a formal procurement procedure and cleared by the Procurement Commission.
He said 26 registered suppliers had obtained bidding documents, of which 10 submitted bids. An initial 21-day bidding period was later extended to 28 days, followed by a designated appeals window. No appeals were lodged by unsuccessful bidders.
“If there had been irregularities, the companies that were not awarded the tender would normally have filed appeals. No such appeals were received,” he said.
The Cabinet Spokesman revealed that over $ 4.27 million has been collected as penalties in relation to lower-quality coal shipments.
Under the procurement terms, consignments must record a calorific value above 5,900 kilocalories per kilogram (kcal/kg). If the value falls below 5,900 kcal/kg, a double penalty is imposed. Shipments between 5,900 and 6,150 kcal/kg incur a single penalty, while those above 6,150 kcal/kg are accepted without penalty.
Jayatissa said 10 ships have arrived so far, with eight fully unloaded and the remaining in the process of discharge. Reports for six shipments have been received.
The first shipment, containing 59,831 metric tons, was found to be below the required standard and incurred a penalty of $ 2.07 million. Additional penalties were imposed on subsequent shipments: $ 436,000 (second), $ 484,929 (third), $ 345,652 (fourth), $ 500,192 (fifth), and $ 510,677 (sixth).
He explained that 80% of a shipment’s value is paid at the loading point, with penalties deducted from the remaining 20%. The $ 2.04 million penalty for the first shipment has already been fully recovered by the Government.
According to him, a load port inspection report is first obtained from a recognised laboratory before shipment acceptance. After unloading in Sri Lanka, a discharge port report is secured through an internationally recognised laboratory.
He said Cotecna had been selected through a procurement process for a two-year period to conduct inspections.
Dr. Jayatissa added that, unlike in previous years when some shipments were accepted without full verification of load and discharge port reports, additional safeguards have now been introduced. These include authentication of the Indian load port laboratory for the first time.
A committee comprising experts from the University of Moratuwa and ministry officials is also to be appointed to examine technical aspects of the inspection reports and assess potential losses. The Power and Energy Ministry Secretary has initiated steps to establish the panel comprising experts from the Universities of Moratuwa and Sri Jayawardenepura and Ministry officials.
Dr. Jayatissa maintained that the current coal procurement process has adhered to the legal and regulatory framework, amid continuing political scrutiny over coal quality and supply.