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Substandard coal tender: Rs. 75 m daily loss alleged

Substandard coal tender: Rs. 75 m daily loss alleged

27 Jan 2026 | BY Buddhika Samaraweera


  • ECA also queries accountability for environmental damage in Norochcholai
  • PUCSL says relevant procurement authorities should take necessary action 


The Electricity Consumers' Association (ECA) organisation claimed the Government is incurring an estimated loss of around Rs. 75 million per day due to substandard coal procured under a controversial tender.

Cabinet Spokesperson Dr. Nalinda Jayatissa said on 25 January that it was confirmed that coal samples sent to India in connection with the shipment that has sparked public debate did not meet the required calorific value.

Speaking to The Daily Morning, the ECA General Secretary Sanjeewa Dhammika said the losses stem from poor-quality coal supplied to the Lakvijaya Coal Power Plant in Norochcholai, which has affected electricity generation and forced the authorities to rely on diesel-based power to make up the shortfall.


“Particular attention should be paid to three coal shipments linked to this tender. Due to coal used from the first shipment between 2 and 9 January, one generator lost 15 megawatts (MW) of production capacity, resulting in a total loss of 45 MW across all three generators. There is still no clear information regarding the second shipment. Coal from the third shipment resulted in a shortfall of nearly 100 MW compared to the electricity output that should have been generated," he alleged.

To compensate for this deficit, he said that electricity had to be generated using diesel, resulting in an additional cost of Rs. 75 million per day, which he said would ultimately have to be borne by electricity consumers.


Although the Government has indicated that compensation will be received, Dhammika questioned as to who would be held accountable for the environmental damage caused by the use of substandard coal. He stressed that compensation should be paid immediately to the communities living around the Norochcholai Plant. "Ash released from the boilers could pose health risks, particularly during rainy weather, and could also cause serious damage to the vegetation in the surrounding areas. The acceptable ash content in coal is 11 per cent, and that coal should be rejected if the ash content exceeds 16%. However, they did not reject it."


Speaking further, he called for the relevant reports within the Norochcholai Power Plant and on quality obtained from India to be tabled in the Parliament and made public. "The President should immediately remove the Energy Minister. If such action is not taken, the truth could be concealed due to political influence, and the public would be made to suffer to cover up the authorities' failures. The Public Utilities Commission (PUC) should also urgently initiate an investigation, calculate the total financial loss incurred, and disclose the findings to the public."


When contacted by The Daily Morning, the PUC Director-Communication, Jayanat Herat said that the issue relates to a procurement matter and does not fall directly within HIS mandate. He said the relevant authorities should take necessary action regarding the issue.


Attempts to contact the Energy Ministry Secretary and Acting Ceylon Electricity Board Chairperson, Prof. Udayanga Hemapala proved futile.




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