Deputy Minister Arkam Ilyas has warned that the public may ultimately bear the cost of reduced power generation at the Norochcholai coal power plant if the current shortfall is found to stem from technical issues rather than supplier fault.
Speaking on the matter during TV programme at Sri Lanka Rupavahini Corporation (SLRC) on 25 March, Ilyas confirmed that all three units of the Norochcholai power plant are currently operational. However, the facility is experiencing a generation deficit of between 150 MW and 167 MW. He explained that if this reduction is due to a technical mismatch—linked to the plant’s mechanical performance following the switch from Russian to South African coal—the resulting financial burden would fall on the Ceylon Electricity Board (CEB) and, by extension, the general public.
He stressed, however, that this would only apply if the issue is technical in nature. “If the deficit is proven to be the result of supplier fraud or manipulated reports, the Government will recover those costs from the company,” he said.
Addressing concerns over a widely cited Rs. 8 billion loss, Ilyas described the figure as a “worst-case scenario” estimate. He noted that the calculation assumes a continuous 150 MW shortfall being compensated by diesel-powered generation around the clock, which he said does not reflect actual system operations.
“In practice, the plant reduces load during daytime hours when solar generation is available, thereby limiting reliance on expensive thermal power,” he said. According to system control data, the current shortfall requires approximately 120 metric tonnes of additional diesel per day.
The Deputy Minister also outlined several financial safeguards implemented by the Government to mitigate potential losses. These include withholding $60 million from the supplier’s $180 million invoice and retaining a $15 million security bond, which could be forfeited if wrongdoing is established.
In addition, a fine of approximately $2.1 million (around Rs. 650 million) has already been imposed on the supplier for the first shipment, which failed to meet the minimum required gross calorific value (GCV) of 5,900.
Ilyas further stated that discrepancies between coal quality samples taken at the loading port and those obtained upon arrival in Sri Lanka remain under investigation. To address this, “umpire samples” from shipments two through eight have been sent to an independent laboratory in Australia, Bureau Veritas, for verification.
He assured that while electricity costs may fluctuate depending on generation expenses, the Government remains committed to holding suppliers accountable for any proven quality violations.
