SL loses Rs 8.4Bn from nine shipments of inferior-quality coal

Losses from individual shipments range from Rs 362Mnn to Rs 1,558Mn   

By Yohan Perera

Sri Lanka has lost Rs 8.4 billion (Rs 8,497 million) from nine shipments of inferior-quality coal, while the country could lose a total of Rs 114 billion if the alleged scam continues for a year, a conference was told yesterday.  

President of the Solar Energy Procurement Constructors Association, Shyam Pathiraja, addressing a seminar on the alleged coal purchase scam organised by the Joint Opposition, said the losses from the first shipment amounted to Rs 554 million, while the second shipment caused losses of Rs 362 million. The loss from the third shipment amounted to Rs 1,318 million, the fourth Rs 471 million, the fifth Rs 598 million, the sixth Rs 1,182 million, the seventh Rs 931 million, the eighth Rs 1,558 million and the ninth Rs 1,493 million.  

The total losses from the nine shipments amount to Rs 8,497 million (Rs 8.4 billion).   Mr. Pathiraja said the average gross generation capacity of previously purchased coal had been about 300 MW, while the capacity of coal purchased from the present supplier had been less than 300 MW. The highest average gross generation capacity of 287 MW had been recorded from the fourth shipment.  

He said the burden might have to be borne by power consumers, especially if the government decides to resort to thermal power to address the supply shortfall, which has been the case to date.  

Convener of the Renewable Energy Protection Front, Sanka Abeysinghe, said the total losses from inferior-quality coal could exceed Rs 114 billion by the end of the year if the government continues to purchase from the current supplier.