Marikkar presents damning report on Rs. 18 billion energy sector coal losses in Parliament

Sri Lanka has suffered a staggering financial loss exceeding Rs. 18 billion as a result of emergency coal procurements and the burning of low-quality fuel stocks, according to details disclosed in Parliament on Tuesday.

Samagi Jana Balawegaya (SJB) MP S. M. Marikkar presented the findings from a parliamentary investigation that uncovered widespread systemic failures and lack of quality controls within the state energy sector.

The figures were compiled following an inquiry by the Sectoral Oversight Committee on Infrastructure and Strategic Development, which examined an official probe led by the Ministry of Power into uninspected coal shipments.

*Severe breakdown in thermal power output*

The investigative findings reveal that the reliance on substandard coal severely impacted national grid generation capacity, forcing expensive emergency interventions.

Reductions in power output led to a 300-megawatt deficit that compelled power authorities to purchase alternative electricity at an extra cost of Rs. 8.5 billion.

Physical damage to generation infrastructure required an additional Rs. 80.4 million in maintenance, alongside Rs. 13.1 million spent on clearing unexpected volumes of excess ash.

Direct losses stemming strictly from the inferior quality of the imported coal were calculated at nearly 7.1 billion rupees.

*Emergency procurement penalties*

Further financial hemorrhaging occurred through rushed supply contracts and logistical delays at ports.

Emergency procurements covering five specific coal shipments created a loss of 2.28 billion rupees, whilst demurrage and related delays for an urgent cargo added a further Rs. 402.8 million to the public bill.

Marikkar said that current estimates remain incomplete because they omit government diesel subsidies and operational losses absorbed by the Ceylon Petroleum Corporation.

Relevant state entities have now received directives to calculate these missing financial figures to determine the final cost borne by taxpayers.