Courtesy Hiru News

Minister of Ports and Civil Aviation and Acting Minister of Energy Anura Karunathilaka says there is an issue with the coal quality of the fifth vessel procured under emergency purchases, and that the supplying company has been informed that penalties will be imposed under tender conditions if a replacement shipment is not delivered before September 1.

Speaking during an adjournment debate in Parliament, the Minister said the impact of the coal quality issue is significant and directly affects the public.

He noted that due to quality concerns, penalties amounting to USD 29.87 million (around Rs. 9.8 billion) have been withheld, along with a bond valued at USD 14.7 million (around Rs. 4.7 billion), bringing the total withheld amount to approximately Rs. 14.72 billion.

He further stated that the financial losses arising from coal quality issues have been assessed, with the government incurring losses of around Rs. 4.5 billion between January and April, while the power generation company has faced losses of about Rs. 3.1 billion. This brings the estimated total loss to around Rs. 7 billion, though the figure may increase as evaluations are still ongoing.

The Minister added that the final loss could reach Rs. 10–11 billion, but stressed that since Rs. 14.7 billion is already being withheld, there is no need for the burden to be passed on to the public.

He also confirmed that the company supplying the fifth emergency coal shipment was notified on June 9 that the cargo cannot be accepted due to certification issues. The company has also been warned that if a replacement vessel is not delivered before September 1, penalties will be imposed in line with tender conditions.