Sri Lanka Coal Procurement Losses Top Rs. 2.7 Billion
- Editor
- February 17, 2026
- Power and energy
- CEB, Lanka Coal (Private) Limited
- 0 Comments
The Ceylon Electricity Board has reported estimated direct losses of Rs. 2.796 billion linked to four coal shipments supplied to the Lakvijaya Power Plant. The losses were attributed to low-grade coal that failed to meet the required calorific value of 5,900 kcal/kg, resulting in reduced efficiency and higher fuel consumption.
To compensate for the shortfall in generation, the CEB dispatched substitute power from the Kerawalapitiya Combined Cycle Power Plant at Rs. 37.53 per kWh. While Rs. 1,037 million has been identified as recoverable through supplier penalties, the net exposure remains about Rs. 1.759 billion, subject to enforcement.
The issue is now under review by the Sectoral Oversight Committee on Infrastructure and Strategic Development, which has called for detailed performance comparisons and procurement clarifications.
