Sri Lanka is facing escalating power supply challenges linked to the use of low-quality coal at its sole coal-fired power plant, the Lakvijaya Coal Power Plant (LVPP) in Norochcholai, according to Bandula Chandrasekera, former chairman of the Lanka Electricity Company (Private) Limited (LECO).
The government imposed nationwide one-hour power cuts on October 19 in response to a sudden drop in electricity generation at LVPP. Although officials initially stated that the outages would last only three days and denied that coal quality was a factor, Chandrasekera, now a consumer rights advocate and activist with the United Republican Front, warned that the crisis could worsen.
Chandrasekera highlighted that the use of substandard coal is not a matter of dispute. A seven-member parliamentary committee, led by K. L. R. C. Wijayasinghe, Additional Secretary to the Energy Ministry, confirmed the procurement of low-quality coal from Chemphar, an Indian supplier, had contributed significantly to the plant's operational difficulties. The committee’s findings reportedly point to financial losses amounting to as much as 20 billion Sri Lankan rupees.
The trouble reportedly began in December 2025 when LVPP started receiving coal shipments from the new supplier, a deal originally contested by the Auditor General in a report to Parliament earlier this year. Since then, LVPP has received 19 shipments of coal from the Indian company. An investigation ordered by the Public Utilities Commission of Sri Lanka (PUCSL) subsequently linked the decline in plant performance to the inferior coal quality.
The procurement process has drawn accusations of corruption. In September 2025, the Frontline Socialist Party exposed the controversial deal, though Parliament, dominated by the ruling New Power Party (NPP), largely dismissed the claims. Chandrasekera pointed out that the parliamentarians had previously defeated a no-confidence motion against then-Power Minister Kumara Jayakody, who subsequently resigned amid mounting criticism over the scandal.
The expert committee determined that restoring LVPP to its prior operational condition would require approximately 80 million rupees. Chandrasekera stressed that the country’s ability to meet electricity demand hinges on LVPP running effectively without interruption.
Further criticism was directed at government decisions during the October 19 outage. Despite the availability of hydroelectric power from the Victoria power station as a backup, authorities reportedly failed to utilize this resource fully, resulting in a blackout that lasted nearly 12 hours, from 11:43 a.m. to 11 p.m. The former LECO chairman also questioned the government’s choice to disconnect solar power over the weekend, a move he said worsened the power deficit.
Chandrasekera called for accountability for those responsible for the shift to low-quality South African coal via the Indian supplier, emphasizing the heavy economic and operational toll on the country. He also urged that the Presidential Commission investigating the coal procurement scandal broaden its scope to include the ongoing operational issues at LVPP.
Economic losses from the recent outage alone are estimated at around 16 billion rupees. When factoring in costs associated with alternative hydro and thermal generation, total losses related to the crisis may approach 20 billion rupees, Chandrasekera said. He warned that the government’s attempts to deflect blame onto opposition forces will do little to resolve the underlying problems.