The Hon. Kumara Jayakody
Hon. Kumara Jayakody tabled annexes in response to questions on coal procurement and the Lakvijaya Power Plant, stating that the plant has only three 300 MW units and that none has been shut down due to coal quality issues. He said all three turbines had been operating continuously since January and that available generation capacity should meet peak demand, subject to hydrology, solar availability and weather conditions. He outlined the supplier registration and procurement process, noting that 12 coal shipments had been delivered by 7 April 2026, seven shipments were delayed, liquidated damages and penalties amounting to USD 12.68 million had been initiated, and further legal action was being discussed with the Attorney General’s Department. Emergency procurement had also been initiated to arrange five additional shipments from 20 April 2026.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 3. Answered in Annex 02. The answer to part two of Q3 is in Annex 03. Additionally, as per the Auditor General’s recommendations of 30 September 2022, the Cabinet-appointed Procurement Committee for 2023–2024 effected the relevant amendments.
¶ 02 4. Answered in Annex 03. Hon. Speaker, I table Annexes 01, 02 and 03.
¶ 03 5. The plant has three units of 300 MW each, not four; you asked about four units. I cannot answer for a fourth unit. Though a fourth was planned, since 2011 there are only three. No unit has been shut down due to coal quality issues. Since January, all three turbines have been running continuously, which is rare in recent times, and they continue to run without interruption. Therefore, current coal quality has not caused any unit to be shut.
¶ 04 Available capacity from Lakvijaya together with hydro and thermal generation will meet peak demand.
¶ 05 Actual plant operation depends on hydrological potential, solar availability, and weather factors.
¶ 06 Regarding supplier registration and procurement: supplier registration as “procurement for instability” was effected based on recommendations of the Bid Evaluation Committee and approval of the High-Powered Procurement Committee. On 18.08.2025 the supplier deposited USD 5,000; due to the exchange rate, USD 4,980 was received via our bank. The short USD 20 was promptly paid and the receipt issued on 22.08.2025. Thereafter tender documents were issued. As per HPP Committee approval, at the time of submitting the bid the company had to be a registered supplier. Lanka Coal Company (Pvt.) Ltd. informed the supplier of registration approval on 14.08.2025, prior to bid submission. Hence, at bid submission, registration had been effected.
¶ 07 As at 07.04.2026, 12 shipments have been delivered. Seven shipments were due by that date as per the schedule; a delay of seven shipments has occurred, and liquidated damages are being pursued by Lanka Coal Company from the supplier.
¶ 08 Additionally, through an emergency procurement last week, five more coal shipments are being arranged from 20.04.2026.
¶ 09 Three shipments were rejected within tolerance; penalties are being pursued. Within stipulated ranges ordinary penalties apply; beyond ranges, double penalties apply. For 12 shipments, USD 12,678,335.71 has been initiated as penalties. Further legal action is being discussed with the Attorney General’s Department.
¶ 10 Annexes tabled.
Provenance
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- Hansard, Thursday, 9 April 2026 ·No. 23475 ·English daily/uncorrected Hansard
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Cite as: The Hon. Kumara Jayakody. 10th Parliament, Parliament of Sri Lanka. Hansard, 9 April 2026. No. 23475. Politick, https://staging.politick.io/lk/speeches/28567