• Opposition cites Rs 18.4b in identified losses
• Ravi K estimates Rs 25 b spent on additional diesel-based power generation
• Presidential Commission’s deadline extended by two months to 16 Dec

The Opposition yesterday (20) put the losses linked to substandard coal supplied for electricity generation at between Rs 18.4 billion and Rs 56 billion, with the higher estimate including Government subsidies and the additional cost of diesel-based power generation.

SJB MP S M Marikkar told Parliament that an investigation had identified losses of Rs 18,368.89 million from the use of substandard coal and emergency purchases. New Democratic Front (NDF) MP Ravi Karunanayake, however, estimated the overall cost at around Rs 56 billion, including direct losses, subsidies and additional expenditure on diesel generation.

Presenting findings from an investigation into the use of imported coal without proper quality inspections, Marikkar said the losses covered reduced electricity generation, additional maintenance, excess ash transportation and emergency coal purchases.

According to the figures he presented, the use of substandard coal had resulted in losses of Rs 7,099 million, while additional maintenance cost Rs 80.4 million and excess ash transportation Rs 13.1 million.

The loss of 300 megawatts (MW) of electricity generation had necessitated alternative power purchases costing Rs 8,572 million. Emergency purchases involving five coal shipments had resulted in a further loss of Rs 2,284 million, while delays involving an emergency shipment had cost another Rs 402.8 million.

Marikkar said the Rs 18,368.89 million figure did not include the Government’s Rs 100 subsidy introduced amid rising global diesel prices or losses borne by the Ceylon Petroleum Corporation (CPC). The relevant parties had been instructed to calculate these additional costs, he said.

Karunanayake estimated the total loss at around Rs 56 billion, comprising Rs 16 billion in direct losses, Rs 15 billion in Government subsidies and Rs 25 billion in additional expenditure on diesel-based electricity generation due to the poor quality of the coal.

The claims follow Energy Minister Anura Karunathilaka’s statement in Parliament on 8 October that Electricity Generation Lanka (EGL) Pvt Ltd and National System Operator (NSO) Pvt Ltd had incurred estimated combined losses of Rs 15.765 billion due to substandard coal supplied between 2025 and 2026.

He said Lanka Coal Company Pvt. Ltd. had recovered Rs 16.989 billion from the supplier through performance guarantees and penalties. The NSO had incurred Rs 8.572 billion in additional costs to replace electricity lost due to the coal quality issue, while EGL had spent Rs 7.192 billion on additional coal, maintenance and handling.

The controversy concerns coal supplied to the Lakvijaya Power Plant in Norochcholai in 2025. It also led to the resignations of former Energy Minister Kumara Jayakody and Energy Ministry Secretary Prof. Udayanga Hemapala.

A Special Presidential Commission of Inquiry was subsequently appointed to investigate past coal procurement and supply arrangements and the circumstances surrounding the allegations.

Meanwhile, the Commission’s term has been extended by two months, until 16 December. President Anura Kumara Dissanayake extended the deadline for its final report from 16 October under Section 4 of the Special Presidential Commissions of Inquiry Law, No. 7 of 1978.