Champika alleges over Rs. 1.2 bn. loss from subpar coal deal

2026-02-20 - 09:57

Former Minister of Power and Energy – Patali Champika Ranawaka has alleged that Sri Lanka has incurred a loss of over Rs. 1,200 million from the first 04 shipments of substandard coal alone. He further claimed that electricity tariffs are likely to be increased to recover these losses. He made these remarks yesterday (Feb. 19) after lodging a complaint with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), requesting an immediate investigation into what he described as a corrupt transaction. Ranawaka also alleged that the Chief Executive Officer of the coal company had initiated a new procurement process after disregarding the recommended procurement process. He also pointed that the 2022 Auditor General’s report submitted to Parliament clearly outlines mandatory procurement procedures for coal imports and cannot be arbitrarily altered. Loss exceeds compensation Ranawaka noted that although authorities have claimed compensation would be recovered, the actual financial loss far exceeds any such compensation. According to him, losses from the first 04 shipments alone amount to over Rs. 1,200 million. He further stated that, as indicated on the website of the Public Utilities Commission of Sri Lanka (PUCSL), an additional loss of around Rs. 800 million has resulted from the most recent shipment. He warned that the practice will not stop here. The most serious concern, he said, is that from April 01, 2026, an estimated loss of Rs. 7.5 million is expected to be passed on to electricity consumers through revised tariff structures. Electricity tariffs to start at Rs. 1,900 under new Act The former minister also alleged that under the Government’s proposed National Electricity Policy, consumers would face a revised fixed charge by the Ceylon Electricity Board (CEB), resulting in electricity bills beginning at a minimum of Rs. 1,900. He described his complaint to CIABOC as a symbolic first step and stated that he intends to mobilize public opposition against what he termed as efforts to weaken renewable energy initiatives while favouring a ‘coal and diesel mafia’. Related News: 3rd coal shipment to Norochcholai, also substandard – Pubudu Cabinet subcommittee uncovers extensive information on coal imported through Dubai-based company ‘Potencia’ was registered under the current govt. – D.V. Chanaka Losses from coal tender & solar power crisis, being passed on through higher electricity tariffs?