February 24, Colombo (LNW): The Ceylon Electricity Board (CEB) has informed a Parliamentary Sectoral Oversight Committee that the use of substandard coal in power generation has resulted in estimated direct losses amounting to Rs. 7,672 million.
The disclosure relates to coal consignments delivered to the Norochcholai Lakvijaya Power Plant, the country’s largest coal-fired facility with a capacity of 900 megawatts. The plant plays a central role in meeting national electricity demand, particularly during peak periods.
Recent laboratory analyses reportedly found that coal supplied through eight separate shipments did not meet the required quality specifications, including calorific value and ash content. The findings have triggered renewed scrutiny over procurement procedures and quality control mechanisms.
In a written communication to the parliamentary committee, the CEB outlined the estimated financial impact of generating electricity using the lower-grade fuel. According to the breakdown provided, the projected losses from each shipment vary considerably, with the highest single consignment accounting for more than Rs. 1.5 billion in losses. Combined, the eight shipments are estimated to have cost the utility in excess of Rs. 7.6 billion in direct losses alone, excluding potential long-term operational impacts.
Energy sector analysts warn that burning inferior coal not only reduces efficiency but can also increase maintenance costs, strain machinery and elevate emissions, placing further pressure on the plant’s operations.
Meanwhile, Opposition Leader Sajith Premadasa stated yesterday (23) that additional data suggests a ninth shipment of coal imported under the current administration may also have failed to meet the prescribed standards. He called for a comprehensive investigation and greater transparency in future fuel procurement processes.
The controversy has intensified calls for stronger oversight of strategic imports, given their direct implications for electricity tariffs, public finances and energy security.