October 11, Colombo (LNW): Energy Minister Anura Karunathilaka has said the government intends to recover the full Rs. 15.765 billion loss attributed to coal quality problems during the 2025/2026 period, with suppliers expected to face financial penalties under the terms of their contracts.
According to the Minister, the recovery process could draw on penalties and performance-related deposits held under agreements with the coal suppliers. These measures could potentially generate Rs. 16.989 billion, providing sufficient funds to cover the reported loss if the relevant contractual provisions are applied.
Karunathilaka stressed that the government did not intend to pass the financial burden on to ordinary electricity consumers. Instead, authorities would pursue recovery through the mechanisms already established in supplier contracts and the applicable legal and regulatory framework.
The Minister’s remarks indicate that the government is seeking to address the financial consequences of the coal quality issue through accountability measures within the procurement system, rather than recovering the cost through electricity bills.
The effectiveness of the recovery effort will depend on the enforcement of contractual penalties and the availability of funds held as deposits. The government’s stated position is that these avenues should be used to recoup the loss without imposing additional costs on the public.
