Inferior coal purchase causes Rs 7.9 billion loss?

• Minister denies claims that inferior coal damaged Norochcholai power plant turbines
• Govt. accused of reducing tender submission deadline due to vested interests
• Breakdown of alleged losses per shipment ranges from Rs 288.5Mn to Rs 1,559.3Mn

By Yohan Perera and Ajith Siriwardana 

The debate in Parliament on the alleged purchase of inferior quality coal yesterday led to the disclosure that the deal has cost the government approximately Rs 7.9 billion.

Samagi Jana Balawegaya (SJB) MP S. M. Marikkar, who is also the Chairman of the Sectoral Oversight Committee on Infrastructure Development and who moved the debate, said the Sri Lankan government has suffered losses amounting to Rs 7.9 billion as a result of purchasing eight shipments of coal.

“The losses incurred from the first shipment are Rs 595.1 million, the losses from the second shipment are Rs 288.5 million, Rs 1,047.4 million from the third, Rs 865 million from the fourth, Rs 1,444.2 million from the fifth, Rs 1,197.7 million from the sixth, Rs 997.9 million from the seventh and Rs 1,559.3 million from the eighth shipment.

“This is not a mere allegation as this information has been revealed in a letter released by the Ceylon Electricity Board (CEB) General Manager’s office and was signed by the Secretary, Ministry of Power and Energy,” the MP added.

SLPP MP D. V. Chanaka said he had predicted a scam with regard to the coal purchase in December last year.  

“The tender for the supply of coal was to be called in July last year, but it was delayed until August 2025. I predicted during my speech in Parliament that the tender was delayed due to a vested interest. A scam has taken place as I predicted,” he said. He recalled that the deadline for submission of tenders was reduced with the same interests.

Minister of Power and Energy Kumara Jayakody, responding to the debate, said the tender procedures were changed as per a recommendation made by the Auditor General in 2023. The Minister also said the allegations made by the opposition that the inferior quality coal had adversely affected the turbines of the Norochcholai power plant were false. “Coal never touches the turbines,” he said.

“The opposition is dejected as the company which they favoured was not tendered,” he also said.

Deputy Minister Sunil Watagala said those in the government and the Minister were ready to face any probe. The debate became noisy, with heated arguments flaring up from time to time.