Power crisis looms as Cabinet cancels coal tender

An electricity crisis is on the cards after the Cabinet decided to cancel a coal tender awarded on 25 August.

Minister of Power and Energy Kanchana Wijesekera said that the tender was cancelled on a request made by the Ministry of Power and Energy.

Wijesekera said that the selected supplier had communicated the inability to perform the tender sighting concerns on the impact on legal cases filed and a payment guarantee risk.

The Minister said that Lanka Coal Company will publish a new International Open Competitive Tender that will allow any suitable supplier to provide coal on a long term credit basis.

Wijesekera also said that in order to fulfill the immediate requirements the balance 19 cargo from last years tender will be advanced.

Ceylon Electricity Board (CEB) trade unions warned of a serious electricity crisis if the coal issue is not resolved soon.

The Ceylon Electricity Board Engineer’s Union warned that daily power cuts are likely to be extended to 10 hours a day if coal is not received by the 25th of October 2022. (Colombo Gazette)

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