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Sri Lanka switches Coal Supplier; Five shipments from Swiss Singapore

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COLOMBO (News 1st) – Lanka Coal (Private) Limited says it will not sign a contract with the supplier it selected to supply coal to Sri Lanka on long-term credit.A senior official attached to Lanka Coal (Private) Limited says the decision was reached as the supplier had failed to place a performance bond of 37 million dollars.He added that the supplier did place the performance bond due to the prevailing credit risk and legal conditions.Therefore, the required coal will be imported to Sri Lanka through Swiss Singapore which bid for the tender.Senior Spokesperson to Swiss Singapore says 50 percent of the tender was procured last year, and the remainder will be procured this year.Although plans were in place to procure the remainder after December this year, steps are now being taken to expedite the process.Accordingly, orders have been placed for five shipments carrying 60,000 metric tonnes of coal each.The first shipment is due to reach Sri Lanka between the 20th and 25th of October.Lanka Coal (Private) Limited says if Sri Lanka decides to purchase coal from the selected supplier on long-term credit, the country would benefit USD 30 from every metric tonne of coal imported to Sri Lanka..

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