Coal Probe Uncovers Missing Lakvijaya Data

COLOMBO (News 1st); The Special Presidential Commission of Inquiry into coal procurement transactions has uncovered that laboratory reports and power generation data related to the Lakvijaya Coal Power Plant were not systematically digitised between 2011 and 2016.The revelation emerged during the latest sitting of the Commission while recording evidence from Deputy Plant Manager Thushantha Abeykoon, who had been summoned to provide further testimony.During the proceedings, Abeykoon submitted chemical analysis reports and power generation data relating to coal supplies only from 2017 to the present. Following the disclosure, Commission Chairman and Supreme Court Justice Gihan Kulatunga instructed officials of the Attorney General’s Department to make efforts to obtain the records covering the earlier years and submit them to the Commission.Further evidence revealed several concerns relating to the coal imported for the 2025/2026 season, including the absence of key quality indicators such as Gross Calorific Value (GCV) and gross heating value measurements expressed in kilocalories per kilogram.The Commission was informed that, as a consequence, larger quantities of coal had to be burned to meet electricity generation requirements. It was also revealed that additional power generated by other thermal power plants had to be supplied to support operations at the Lakvijaya Power Plant.The Commission also questioned the Deputy Plant Manager regarding the mechanism used to make payments to coal suppliers and transport service providers, based on laboratory reports issued at the loading port and reports obtained during unloading operations in Sri Lanka.Another issue that emerged during the hearing was that certain international companies with previously identified concerns relating to coal quality had nevertheless been permitted to participate in the supply process following approval by the tender committee.Evidence further revealed that although supplying companies were required to email laboratory reports and pricing details issued at the loading port to the Lakvijaya Coal Power Plant before shipment commenced, numerous instances had occurred where such documentation was submitted only after vessels had arrived in Sri Lanka, raising additional concerns.Particular attention was focused on coal consignments imported from South Africa.The Commission also questioned whether coal had been procured from suppliers at prices that appeared unrealistically low when compared with prevailing global market rates.During the hearings, attention was drawn to procedures followed after concerns were raised regarding coal quality. Evidence confirmed that, in addition to obtaining quality reports from Bureau Veritas, an internationally recognised independent inspection agency, further quality assessments had also been obtained from laboratories nominated by suppliers themselves following requests from the supplying companies.Another significant issue disclosed during Abeykoon’s testimony was that tenders had been called for coal imports under the CFR (Cost and Freight) international pricing index, despite cabinet approval not being granted for the use of that pricing mechanism. The Cabinet had previously authorised only the FOB (Free on Board) and CIF (Cost, Insurance and Freight) pricing models.When questioned about the reason for adopting the CFR model, the Deputy Plant Manager stated that it had been introduced to reduce complexities associated with the import process.The hearing also highlighted questions regarding who had authorised coal samples to be sent to laboratories nominated by suppliers, an issue the Commission indicated requires further examination.Meanwhile, separate testimony from retired Lakvijaya Power Plant Manager P.W. Bamunusinghe revealed concerns regarding the tender process for coal procurement for the 2025/2026 season.Evidence showed that the original 48-day period allocated for calling bids from suppliers had been reduced to 21 days with the approval of the National Procurement Commission. However, the period was subsequently extended to 28 days without obtaining further approval, creating what was described as a questionable situation in the procurement process.Bamunusinghe, who served at the Lakvijaya Coal Power Plant from 2013 to 2024, had previously held the position of Chief Engineer before becoming Deputy Plant Manager. He had also served on the Board of Directors of Lanka Coal Company and was a member of the Tender Evaluation Committee.The Attorney General’s Department was represented during the proceedings by Deputy Solicitor General, Ganga Wakishta Arachchi, and Senior State Counsel Angelo Van Hoff.The Special Presidential Commission, chaired by Supreme Court Justice Gihan Kulatunga, was appointed by President Anura Kumara Dissanayake to investigate all coal-related transactions in Sri Lanka, with the inquiry continuing to examine allegations and irregularities linked to coal procurement, quality assurance, pricing mechanisms and tender procedures.