Colombo, Oct. 21 (Daily Mirror) - In what appears to be a confirmation of the political controversy surrounding inferior-quality coal imports, a parliamentary committee report has revealed that an additional over Rs. 15 billion had to be spent on power generation.
It includes over Rs. 7 billion for high coal consumption cost , Rs. 15 billion for the purchase of electricity for the compensation of shortfall triggered by the use of low quality coal , a further Rs. 80.4 million incurred in maintenance costs and other related costs.
The Lakvijaya Power Plant in Norochcholai has set the standard coal consumption rate at 0.3742 kg per unit of electricity generated. According to the report, any excess consumption above this standard is considered an additional cost, calculated using criteria based on consumption between 2018 and 2025.
Power plant authorities have confirmed to the committee that the additional cost arising from higher coal consumption following the use of inferior-quality coal amounted to Rs. 7 billion.
Besides, the use of these inferior-quality coal stocks has resulted in an additional maintenance cost of Rs. 80.4 million. This includes costs for dismantling, removing, cleaning and reinstalling boiler air preheater elements, providing the necessary access and cleaning accumulated ash in the boiler, and Rs. 1.3 million for repairs to the coal mill.
The questionable coal stocks had been received under a tender agreement entered into by Lanka Coal Company with Trident Chemphar Ltd. to supply 1.5 million tonnes of coal from December 2025 to May 2026. Although 25 shipments were scheduled to be delivered, only 19 had been delivered amid concerns over the quality of the supplies. Another five shipments had been secured through emergency procurement procedures.
The committee studied coal usage during the period from January 1, 2026, to September 15, 2026.
The committee was appointed by the Sectoral Oversight Committee on Infrastructure and Strategic Development.
At its meeting held on August 5, 2026, the committee recommended the appointment of a separate committee under the chairmanship of Chandana Wijesingha, Additional Secretary (Power and Electricity Sector Reforms) of the Ministry of Energy. The proposed committee was to comprise the Additional Secretary (Finance) of the Ministry of Energy, a representative of the Public Utilities Commission of Sri Lanka, a representative of the Lakvijaya Power Plant, a representative of the National System Operator (Private) Limited, and a representative of Lanka Coal (Private) Limited.
The committee was tasked with conducting a comprehensive study into delays in the arrival of the relevant coal shipments, the failure to generate the specified number of megawatts using the coal stocks in question, the quantity of electricity that had to be purchased from external institutions, and the losses incurred as a result of emergency procurements. It was also instructed to submit a comprehensive report on the total financial loss incurred.
The committee instructed that the assistance of Professor Saliya Jayasekara, Chairman of Electricity Generation Lanka (Private) Limited, be obtained for this purpose. Other relevant officers were also to be involved in discussions, as necessary, and the report was to be submitted before September 30, 2026.
These instructions were communicated to the Secretary of the Ministry of Energy by letter No. PS/LS/SOC/10P/02 (IX) dated August 7, 2026.
However, Professor Jayasekara, who had been nominated to the committee, subsequently submitted a letter requesting to withdraw from it.
At its meeting held on September 10, 2026, the committee was informed by Chandana Wijesingha, who attended the meeting representing the Ministry of Energy, that the committee could proceed with its work without Professor Jayasekara's participation, as requested by him.