The government has withheld more than $37 million from coal suppliers — comprising fines and performance guarantees — as authorities assess losses linked to disputed shipments used for thermal power generation, Deputy Power Minister Arkam Ilyas said on Monday.
Sri Lanka has so far received 18 coal shipments under the current procurement cycle, of which 16 came from the first supplier and the remaining two from a second supplier. All are now subject to penalty deductions.
“As of today (11), we have withheld $22 million as fines. In addition, we are holding $15 million from the performance bond. In total, over $37 million is being retained by us,” Ilyas told reporters. At current exchange rates, the retained amount exceeds Rs. 10 billion.
Asked whether the state had taken a financial hit from the disputed coal, Ilyas acknowledged that losses had occurred but said the final figure cannot be determined yet. The withholdings, he said, reflect the government’s working estimate of damages pending a full technical and financial assessment after the last shipment is consumed.
“These funds are being held because we think there is a loss. However, we cannot confirm the exact amount yet until calculations are completed based on how electricity had to be generated, and only after the final coal shipment is fully utilised,” he said.
Power Minister Anura Karunathilaka invited Opposition lawmakers, consumer groups and any individual with relevant information to submit insights to the Presidential Commission probing the procurement to allow a full inquiry.
The disclosure adds a fresh financial accountability angle to a procurement scandal that has already triggered a Presidential Commission of Inquiry now hearing public submissions and a CID review of electronic procurement records. Sub-standard coal was earlier blamed for a 250 GWh shortfall in electricity generation, which fed into the latest tariff revision passed to consumers.
