The prevailing power crisis may worsen due to controversy surrounding the tender to buy coal for the Lakvijaya power plant.

The Cabinet this week canceled the coal tender awarded on August 25 to the United Arab Emirates-based Black Sand FZE.

According to the Minister of Power and Energy Minister Kanchana Wijesekara the tender had been canceled as  Black Sand FZE has pulled  out of the deal
Black Sand FZE fears legal cases filed and payment guarantee risk.

“Now Lanka Coal Company will publish a new International Open Competitive Tender to provide coal on a long-term credit basis,” 

Minister Wijesekara said.

To fulfill immediate demands, the balance cargo of 19 coal shipments ordered through last year’s tender will be advanced. The cancellation of the tender will significantly increase the duration of power cuts. Already the Public Utilities Commission of Sri Lanka has approved increasing the duration of scheduled power cuts by one hour to 2 hours and 20 minutes.

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