Sri Lanka’s coal procurement process has come under intense scrutiny amid allegations that substandard coal was imported from an Indian supplier under the watch of the JVP-led government. The controversy has placed the Energy Ministry and state energy institutions at the center of a growing public debate, especially as the Energy Minister now faces corruption-related allegations being examined by the Bribery Commission.
At the heart of the dispute is a coal shipment supplied to the Lanka Coal Company that allegedly failed to meet mandatory quality standards specified in the procurement agreement. According to the Electricity Consumers’ Association (ECA), the coal’s calorific value measured approximately 5,900 kilocalories significantly below the contractual requirement of 6,150 kilocalories while ash content reportedly exceeded the permitted 16 percent threshold.
ECA General Secretary Sanjeewa Dhammika has strongly criticized attempts by officials to downplay the issue. He dismissed recent remarks by the Lanka Coal Company Chairperson, who described coal ash as beneficial, calling such claims neither scientifically sound nor industrially credible. Dhammika argued that quality verification should precede any discussion on usage or mitigation, stressing that the agreement clearly outlines remedies for non-compliance.
Under the contract, he explained, coal shipments failing to meet basic specifications must be rejected outright. Financial penalties or compensation mechanisms apply only if the supplier meets minimum calorific benchmarks, which, according to available test results, was not the case in the disputed shipment. Despite this, the coal was reportedly unloaded and used, raising serious questions about decision-making within key state institutions.
Beyond contractual breaches, the ECA warns of long-term consequences for critical infrastructure. Thermal power plant machinery, valued at billions of rupees, may suffer accelerated wear and damage when operated using inferior fuel. Dhammika compared the situation to running a modern vehicle on low-octane fuel an action widely known to degrade engine performance and lifespan.
The financial implications are equally alarming. Estimates suggest losses of nearly Rs. 75 million per day due to reduced efficiency and increased maintenance costs associated with the poor-quality coal. Consumer advocates argue that these losses ultimately burden electricity users already struggling with high tariffs.
Efforts to obtain responses from senior officials, including the Energy Ministry Secretary and the Acting Chairperson of the Ceylon Electricity Board, were unsuccessful, further fueling criticism over transparency. Meanwhile, Cabinet Spokesperson Dr. Nalinda Jayatissa has publicly acknowledged that independent testing confirmed the coal samples sent for analysis did not meet the required calorific standards.
As public pressure mounts, energy sector observers insist that accountability is essential—not only to address immediate losses, but to restore confidence in procurement practices under the current administration.
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