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Saturday, April 4, 2026
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HomeNewsRs 7.9bn Loss Alleged Over Inferior Coal Purchases, Parliament Told

Rs 7.9bn Loss Alleged Over Inferior Coal Purchases, Parliament Told

Rs 7.9bn Loss Alleged Over Inferior Coal Purchases, Parliament Told

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A parliamentary debate yesterday (20) on the alleged procurement of substandard coal revealed that the Government may have incurred losses amounting to approximately Rs 7.9 billion.

Samagi Jana Balawegaya (SJB) MP S. M. Marikkar, who is also the Chairman of the Sectoral Oversight Committee on Infrastructure Development and who moved the debate, said the losses stemmed from the purchase of eight coal shipments.

According to figures presented by the MP, the losses were calculated as Rs 595.1 million from the first shipment, Rs 288.5 million from the second, Rs 1,047.4 million from the third, Rs 865 million from the fourth, Rs 1,444.2 million from the fifth, Rs 1,197.7 million from the sixth, Rs 997.9 million from the seventh and Rs 1,559.3 million from the eighth shipment.

“This is not a mere allegation, as this information has been revealed in a letter issued by the Ceylon Electricity Board General Manager’s office and signed by the Secretary to the Ministry of Power and Energy,” Marikkar said.

Sri Lanka Podujana Peramuna MP D. V. Chanaka said he had predicted a potential irregularity in the coal procurement process as early as December last year.

“The tender for the supply of coal was to be called in July last year, but it was delayed until August 2025. I stated in Parliament that the delay indicated a vested interest. A scam has taken place as I predicted,” he said, adding that the deadline for submission of tenders had also been shortened under similar circumstances.

Responding to the allegations, Minister of Power and Energy Kumara Jayakody said the changes to the tender procedure were implemented in line with a recommendation made by the Auditor General in 2023.

The Minister also rejected claims by the opposition that the alleged inferior quality coal had damaged the turbines of the Norochcholai Power Plant.

“Coal never touches the turbines,” he said, dismissing the accusations.

He further claimed that the opposition’s criticism stemmed from dissatisfaction over the outcome of the tender process.

Deputy Minister Sunil Watagala said the Minister and the Government were prepared to face any investigation into the matter.

The debate turned heated at several points, with frequent interruptions and loud exchanges between members.

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