Audit reveals irregularities in coal procurement for Lakvijaya Power Plant

A recent audit report has revealed several issues in the coal procurement process by the Lanka Coal Company for the Lakvijaya Power Plant for the 2025/2026 season. The Auditor General's report states that Trident Chemphar Ltd, a controversial supplier, used laboratory results from a loading port facility that had its license revoked. This audit was initiated after the Parliamentary Committee on Public Enterprises (COPE) expressed concerns about how coal was being procured and its quality for the Norochcholai Lakvijaya Power Plant. The findings indicate that when bids were invited, Trident had not finished its registration. Despite tender rules requiring that only fully registered suppliers could bid, three unregistered suppliers, including Trident, were allowed to take part. Normally, coal shipments are tested at both the loading and unloading ports by independent inspectors. However, the audit discovered that testing at the loading port was done by an Indonesian lab, PT Mitra SK Analisa Testama Samarinda, which had its license canceled by December 29, 2025. Additionally, there was no proof that this company's license was renewed by March 31, 2026. Nonetheless, all 12 shipments received were certified based on reports issued under this questionable arrangement with Mitra SK South Africa. The report also pointed out inconsistencies between the test results from the loading port and the data at the main control unit of the Lakvijaya Power Plant. Although the Lanka Coal Company had various ways to check these discrepancies, it did not use any of them. The audit also noted significant failures in supply planning. While Sri Lanka must maximize coal imports during limited unloading times, no shipments were made during a crucial 40-day period from November 13 to December 30, 2025. Due to the lack of shipments, an emergency procurement took place on March 18 this year. However, the chosen supplier, Taranjot Resources (Pvt) Ltd., had previously failed to provide coal that met the necessary gross calorific value of 5,900 kilocalories or more within a 36-month period.