Energy Minister Anura Karunathilaka says the tender process for the coal Sri Lanka needs over the coming year has been completed in full, and that no power cuts will be imposed this year as a result. New shipments are expected to reach the country from the first week of September.
The Cabinet has approved the award of supply contracts to two companies for the Lakvijaya Power Plant at Norochcholai, the island’s largest coal-fired station, covering the 2026/2027 period. The award follows a Cabinet decision on 30 March to procure 2.28 million metric tonnes of coal, subject to a variation of 10% either way.
Nine bids were received under international competitive bidding and evaluated by a standing Cabinet-appointed procurement committee. On its recommendation, Aditya Birla Global Trading (Singapore) was awarded 70% of the requirement, or 1.596 million tonnes, with India’s Mohit Minerals Limited supplying the remaining 30%, or 684,000 tonnes.
Sourcing from two suppliers rather than one was intended to reduce the risk of a supply disruption interrupting generation, according to the Government Information Department. Daily FT reported that the National Procurement Commission authorised the two-supplier approach, and that the proposal was submitted by Karunathilaka. Cabinet Spokesman Nalinda Jayatissa announced the award at the weekly post-Cabinet media briefing.
The minister said inspection reports will now be obtained directly by the Lanka Coal Company under a revised system, which he said closes off financial and quality-related fraud that could occur through intermediaries.
Heavy rain across the island this month has also lifted hydropower output. Karunathilaka said that by 12 August, reservoirs held enough water to generate 868 GWh of hydropower, excluding Randenigala, and that hydropower is currently meeting 48% of national electricity demand.
On that basis, he said, no power cuts would be required this year on account of any shortfall in generation.
