Questionable Coal Costs Sri Lanka Rs. 4.5 Bn in Just Four Months

COLOMBO (News 1st); Sri Lanka's ongoing investigation into controversial coal imports heard yesterday (15) that questionable coal supplied to the Lakvijaya Coal Power Plant resulted in an additional cost of Rs. 4.517 billion during the first four months of this year.The revelation was made before the Presidential Commission of Inquiry into Coal Transactions based on evidence presented by Buddhika Sanjeewa, Director of the National System Control Centre.According to the testimony, the additional expenditure arose when lower-quality coal was unable to generate the electricity capacity required by the national grid, forcing authorities to compensate for the shortfall by procuring electricity from alternative power plants.Evidence presented before the Commission showed that the Kerawalapitiya Sobadhanavi private power plant was among the primary facilities used to bridge the electricity capacity deficit during the relevant period.Another matter that emerged during yesterday's proceedings related to the payment mechanism used for coal suppliers and the apparent discrepancies between laboratory reports issued at the port of loading and those obtained after the coal was unloaded in Sri Lanka.Professor Saliya Jayasekara, Chairman of Lanka Electricity Company (Private) Limited, told the Commission that suppliers are paid 80 percent of the applicable value based on laboratory reports issued at the port of loading, while the remaining 20 percent is paid after laboratory findings are obtained upon unloading.He stated that comparisons carried out between quality reports issued at loading ports and the actual coal shipments received in Sri Lanka had revealed inconsistencies in many consignments.Professor Jayasekara further informed the Commission that samples from the disputed coal stocks are tested at several stages, including during loading, unloading and through the laboratory facility established at the Lakvijaya Power Plant itself.The inquiry also heard that following concerns regarding the quality of coal imports, additional assessments were conducted through Bureau Veritas, the international quality inspection and certification organisation, to obtain further quality reports on the shipments.According to Professor Jayasekara, the laboratory reports generated by the facility installed at the Lakvijaya Power Plant were found to be the closest reflection of the actual quality of the coal when compared with the findings of other testing processes.He also pointed out that financial losses are incurred due to the smaller size of imported coal particles and higher concentrations of ash content, both of which negatively affect efficiency and increase operational costs.The Presidential Commission yesterday also heard evidence from Sameera Adikaram, Director of the Licensing Division of the Public Utilities Commission of Sri Lanka. His testimony focused on how the additional costs associated with electricity generation from the disputed coal supplies were regulated and how data analyses were conducted to ensure the uninterrupted supply of electricity to consumers.In addition, Prabath Indika Prasanna, Head of Policy at the National Procurement Commission, was summoned before the Commission. The inquiry examined the manner in which committees linked to the coal procurement process had been appointed and the procedures followed in relation to procurement decisions.