FR petition filed by Ven. Omalpe Sobitha Thera against the alleged coal deal.

September 07, 2022

Ven. Dr Omalpe Sobitha Thera has filed a Fundamental Rights petition in the Supreme Court seeking an order staying the purported award made to a company incorporated in the United Arab Emirates (UAE) for the procurement of 4.5 million MTs of coal for the Lakvijaya Power Plant.

The petitioner is challenging the decision of the Special Standing Cabinet Appointed Procurement Committee to award the coal tender to the Black Sand Commodities Company and subsequent approval issued by the Cabinet of Ministers.

Sobhitha Thera maintained that the price per MT tonne of coal for which the tender has been awarded to the Black Sand Commodities Company is exorbitantly high, vis-à-vis the current Russian prices, thus giving and affording an unjustifiably, unfathomable, and indeed, unconscionable profit margin to the above company.

The petitioner states that Black Sand Commodities Company is not registered with Lanka Coal Company (Pvt) Ltd. as a supplier of coal.

The petitioner further stated that the tender in question is for the procurement of 4.5 million MTs of coal, to be supplied during the span of three years, commencing from October 2022 to April 2025.

Sobhitha Thera said Black Sand Commodities Company had been selected to supply coal at a FOB base rate of USD 295.22 per ton, which is clearly well above the market rates that other countries have imported coal at Russian prices in the month of July 2022. Based on the above prices, there is a difference of approximately USD 115 to USD 155 per tonne of coal.

The Supreme Court has fixed this matter to be taken up for support on October 25.