No losses to state from coal imports – Minister

2026-01-28 - 04:24

Cabinet Spokesman and Mass Media Minister Dr. Nalinda Jayatissa said the government has not incurred any losses from the importation of coal, stressing that all such consignments are handled under an established penalty system that has been in place for years. Addressing the weekly Cabinet media briefing, the Minister explained that instances of substandard coal have been reported even in previous years and that a standard method exists to deal with them through fines. The minister stated this while addressing the weekly cabinet press briefing yesterday (27). “Normally, if the calorific value of coal falls below 5,900 kilocalories, a fine amounting to twice the value of the shipment is imposed. If the value is between 5,900 and 6,150 kilocalories, the fine is equal to the value. The required standard for coal is above 6,150 kilocalories,” he said. Dr. Jayatissa noted that two quality reports are obtained during the importation process, one at the port of loading and another at the port of unloading. “If the report from the loading port shows the coal to be below 6,150 kilocalories, the shipment is rejected outright and the supplier bears the loss. However, if the unloading port report shows the coal to be above the acceptable threshold, it is accepted. If it is below standard, fines are imposed accordingly,” he explained. The Minister said the questioned coal shipment arrived in Sri Lanka in four loads. The first consignment, amounting to 60,000 metric tonnes, recorded a calorific value of 5,520 kilocalories and was therefore subjected to a fine equivalent to twice its value. The second shipment was accepted as it fell within the usable standard range. The third and fourth consignments are currently being unloaded, and their quality reports are expected soon, after which appropriate action will be taken. He further revealed that under the same system, the Sri Lankan government earned USD 4.54 million in fines during 2020-2021, USD 6.1 million in 2021-2022, and USD 7.8 million in 2022-2023.“These fines are imposed in accordance with long-standing procedures. The same method was followed by previous governments,” Dr.Jayatissa said. Responding to concerns over whether the importation of substandard coal has caused losses to the state, the Minister emphasised that if these procedures did not result in losses in the past, there is no basis to claim they would do so now. “As we are following the same established process, there is no possibility of loss to the government,” he added. (dailynews.lk) (Except for the headline, this story, originally published by dailynews.lk has not been edited by SLM staff)