Minister Bimal Rathnayake has admitted that a recent shipment of coal imported to Sri Lanka was below the required quality standards, with the supplier already penalised up to USD 2 million.

Addressing a public gathering, Rathnayake said laboratory analyses had confirmed the substandard nature of the consignment, prompting authorities to impose financial penalties on the company concerned.

He explained that coal procurement is governed by a lengthy and complex tender process, stressing that immediate alternatives are not readily available. As such, the imposition of fines was the only viable short-term response.

The Minister also cautioned against taking further punitive action at this stage, noting that replacing the supplier would take several months. He warned that excessive penalties could push the company towards bankruptcy, potentially jeopardising the continuity of coal supplies to the country.