Samagi Jana Balawegaya (SJB) MP S.M. Marikkar has alleged that the import of substandard coal for the Lakvijaya Power Plant has caused losses exceeding Rs. 10 billion, claiming that all 19 coal shipments tested by an international third-party agency failed to meet the required quality standards.
Speaking in Parliament, Marikkar said that previous claims that reports on low-quality coal imports were inaccurate had been disproved by findings from Bureau Veritas International Trade Australia Ltd., which conducted a third-party assessment of the coal shipments.
He claimed that none of the 19 coal consignments tested had met the required calorific value standard of 5,900 kcal/kg, with most shipments recording significantly lower values. “Not a single one of the 19 ships met the required standard of 5,900,” Marikkar said, while tabling documents containing the test results in Parliament.
According to the MP, data from the Public Utilities Commission of Sri Lanka (PUCSL) showed that the inability to generate 300 MW of electricity due to the lower-quality coal resulted in an additional expenditure of Rs. 8.536 billion between January and June this year for purchasing diesel and furnace oil.
He claimed that as the coal was expected to continue being used until 12 September, the total financial impact could exceed Rs. 10 billion.
Marikkar further alleged that the cost of electricity generation had increased from around Rs. 20 per unit to Rs. 23 per unit due to the issue, while warning that damage to power plant machinery could further increase the financial burden.
He also outlined monthly losses he attributed to the coal issue, claiming losses of Rs. 184 million in January, Rs. 513 million in February, Rs. 3.46 billion in March, Rs. 866 million in May, and Rs. 409 million in June.
“These losses will continue to increase through July and August, and until 12 September,” he said.
The SJB MP accused the Government of failing to deliver on its promises of a “system change” and claimed that the country’s electricity consumers had faced tariff increases due to the decision to import what he described as low-quality coal.
The allegations were made during a parliamentary debate, with Marikkar presenting documents related to the coal quality assessments. The Government has not responded to the allegations in Parliament yet.
Attempts by The Sunday Morning to obtain comments from Lanka Coal Company (LCC) Chairman Jayantha Rathnayake and General Manager Namal Hewage were unsuccessful. Meanwhile, National System Operator (NSO) Chairman Dr. Pradeep Perera declined to comment, stating that the matter fell under the purview of the LCC.