Substandard Coal Procurement Cost Sri Lanka Rs 18.3 Billion, Committee Finds

A parliamentary committee inquiry in Sri Lanka has revealed that the procurement and use of substandard coal has resulted in an estimated financial loss of Rs 18.3 billion to the state.

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The findings highlight significant lapses in quality assurance and procurement oversight within the nation’s energy supply chain, which allowed low-grade fuel consignments to pass inspection and enter the power generation system at immense public expense.

Key Findings

  • A legislative committee determined that inferior coal supplies caused direct and indirect financial damage totaling Rs 18.3 billion.
  • The committee’s assessment underscores critical vulnerabilities in quality control protocols and fuel purchasing procedures.

The revelation places renewed scrutiny on national energy administrators and oversight bodies as pressure mounts to establish accountability and enforce stricter compliance measures on future bulk fuel contracts.

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