Home News Feature Cabinet clears coal procurement for Norochcholai as Sri Lanka moves to secure power supply
News Feature

Cabinet clears coal procurement for Norochcholai as Sri Lanka moves to secure power supply

Share
Share

By The Pulseline News Desk

The government has moved to secure the coal supply required for the operation of the Norochcholai Lakvijaya Power Plant, with the Cabinet of Ministers approving the procurement of 2.28 million metric tons of coal for the 2026/2027 period.

The decision comes amid continuing efforts to ensure uninterrupted electricity generation and avoid fuel shortages that could threaten the country’s power supply.

Cabinet approval for the procurement process was initially granted on March 30, 2026, with authorities tasked with obtaining sufficient coal stocks to meet the requirements of Sri Lanka’s largest coal-fired power plant.

The National Procurement Commission subsequently oversaw an international competitive bidding process that attracted nine bidders, after which two suppliers were selected following evaluations and recommendations by the High-Level Standing Procurement Committee.

Under the approved arrangement, Singapore-based Aditya Birla Global Trading Singapore Pte. Ltd. will supply 70 percent of the total requirement, equivalent to 1.596 million metric tons, while India’s Mohit Minerals Limited will provide the remaining 30 percent, amounting to 684,000 metric tons.

The Cabinet had endorsed the proposal submitted by the Minister of Power to award the contracts to the two companies.

Norochcholai remains the backbone of Sri Lanka’s electricity generation system, accounting for a significant share of the national power supply. Any disruption to coal deliveries can have immediate consequences for electricity generation costs and the stability of the national grid.

The latest procurement decision also comes against the backdrop of previous controversies surrounding coal imports, including concerns over procurement procedures and the quality of coal supplied to the plant.

Independent tests conducted earlier this year on several coal consignments unloaded at the Puttalam jetty found that some shipments had failed to meet the required calorific value standards, raising questions about quality control mechanisms and oversight in the procurement process.

Against that backdrop, the government’s decision to finalize coal contracts well ahead of demand is being viewed as an attempt to avoid supply disruptions while strengthening energy security.

Officials say the procurement of 2.28 million metric tons of coal is expected to provide the Lakvijaya plant with the supplies needed to maintain continuous operations during the 2026/2027 cycle, reducing the risk of power shortages and supporting stable electricity generation across the country.

Author

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles
News Feature

Sri Lanka to lease 247 hectares of State land to returnee migrant workers, young entrepreneurs

By The Pulseline News Desk The Government is preparing to open 247...

News Feature

Sri Lanka steps up human-elephant conflict strategy as Government unveils new conservation measures

By The Pulseline News Desk As Sri Lanka marks World Elephant Day,...

News Feature

BASL warns 22nd Amendment could undermine judicial independence, calls for referendum

By The Pulseline News Desk The Bar Association of Sri Lanka (BASL)...

News Feature

Sri Lanka secures $2.73 million World Bank grant for maternal and child nutrition in four districts

By The Pulseline News Desk The Government has approved a three-year project...