Cabinet Spokesperson and Minister Nalinda Jayatissa today addressed concerns regarding the importation of a coal consignment that was found to be substandard, stating that established procedures are in place to deal with such issues and that similar incidents have occurred in previous years.
Speaking at the weekly Cabinet media briefing in response to a journalist’s query on potential losses to the Government, the Minister said fines have been consistently recovered from supplier companies whenever coal imports fail to meet required standards.
He explained that the first shipment, amounting to 60,000 metric tonnes, recorded a calorific value of 5,520 kilocalories during sample testing. As a result, a penalty amounting to double the prescribed fine will be imposed on the supplier. In contrast, the second shipment recorded a calorific value of 6,017 kilocalories, which falls within the acceptable range of 5,900 to 6,150 kilocalories.
Minister Jayatissa said the third and fourth consignments are currently being unloaded, and decisions regarding them will be taken once sample testing is completed.
Referring to past instances, he noted that fines of USD 7.54 million were recovered during the 2020–2021 period, USD 6.1 million between 2021 and 2022, and USD 7.8 million during 2022–2023 due to substandard coal imports.
He emphasized that imposing penalties or removing coal deemed unfit for use is not unusual and is part of an agreed procedure with coal suppliers. If coal passes tests at the port of loading but fails to meet standards after arrival in Sri Lanka, penalties are imposed accordingly.
Clarifying public concerns, the Minister stressed that not all coal imports are problematic, and only certain consignments face issues, which are addressed through established mechanisms agreed upon with supplier companies.
