Marikkar alleges Rs. 8.5 b loss from coal shipments so far, raising serious concerns in Parliament about the financial and operational implications of a controversial coal procurement process linked to Sri Lanka’s power generation sector.
Marikkar alleges Rs. 8.5 b loss from coal shipments in Parliament debate on energy procurement
Speaking during a heated parliamentary session, Samagi Jana Balawegaya (SJB) MP S.M. Marikkar accused the Government of presiding over what he described as massive losses tied to coal imports used for electricity generation. He claimed that a report by the Public Utilities Commission of Sri Lanka (PUCSL) pointed to a cumulative loss of Rs. 8,497 million arising from nine coal shipments.
Marikkar presented a breakdown of the alleged losses shipment by shipment, arguing that each cargo resulted in hundreds of millions of rupees in losses. According to his assessment, the combined financial impact has grown into a multi-billion-rupee burden on the country’s energy sector.
He drew comparisons to past financial controversies, claiming that the scale of the losses exceeds the widely debated bond scandal, which he noted amounted to approximately $147.5 million, or about Rs. 4.5 billion. By contrast, he suggested that the losses connected to the coal procurement process have already surpassed that figure, raising questions about procurement oversight and accountability.
Beyond financial concerns, Marikkar also alleged serious operational challenges linked to the quality of the imported coal used at the Lakvijaya Coal Power Plant. According to him, the coal shipments contained ash levels ranging between 22% and 26%, significantly higher than the average ash content of about 11% typically expected for efficient combustion in power generation.
He argued that the higher ash content could disrupt plant operations and potentially cause long-term damage to critical equipment. Marikkar claimed that turbines at the facility were being halted frequently, at times every 15 minutes, due to operational issues associated with the lower-quality fuel.
Such disruptions, he warned, could have significant consequences for the national power grid if not addressed promptly. Damage to turbine blades alone could cost as much as Rs. 100 million per unit, he said, stressing that the implications extend beyond financial losses to risks affecting electricity supply stability.
“If such damage occurs, we could face a situation where electricity generation is severely affected,” he cautioned, suggesting that poor procurement decisions could ultimately undermine the reliability of the country’s power infrastructure.
The opposition MP also questioned the handling of shipping delays associated with the coal imports. According to Marikkar, late penalties that should have been imposed on delayed shipments were allegedly not collected. He claimed that at least 11 vessels had arrived without the enforcement of applicable penalty clauses, despite guidance reportedly provided by the Attorney General.
“The 11th ship was already being unloaded,” he told Parliament, suggesting that authorities had continued with the procurement process without addressing potential contractual violations.
During his remarks, Marikkar also linked the controversy to broader economic concerns, arguing that the issue highlighted deeper governance challenges in the management of key public resources. He criticised the Government for failing to deliver on major election promises, particularly commitments related to reducing the cost of living.
Among those promises, he highlighted a pledge to cut electricity tariffs by one-third. According to Marikkar, the current situation surrounding coal procurement raised doubts about whether such commitments could realistically be fulfilled under existing conditions.
“They said they would reduce the electricity bill by one-third. Tell them to do that,” he said, challenging the Government to deliver on its earlier commitments to the public.
Marikkar further argued that similar pledges relating to value-added tax reductions and relief measures for food, education, and healthcare had also yet to materialise, contributing to growing public frustration.
He also criticised what he described as inconsistent messaging regarding the economy, particularly in relation to geopolitical tensions in the Middle East and their potential economic impact on Sri Lanka.
According to Marikkar, the Government had considered releasing an economic impact analysis related to regional instability. However, he said the opposition had warned that such assessments, if poorly communicated, could risk undermining confidence in Sri Lanka’s tourism sector and foreign investment environment.
The MP also renewed calls for the recovery of alleged overseas assets linked to members of the Rajapaksa family, an issue that had been prominently raised during election campaigns. At the same time, he emphasised that investigations into alleged wrongdoing should not be selective.
He argued that accountability must apply equally to all individuals where credible evidence exists, including those connected to past controversies or national security matters.
Marikkar specifically referred to the Easter Sunday attacks investigations, stating that if evidence warranted legal action against individuals such as former State Intelligence Service Chief Suresh Sallay or former President Gotabaya Rajapaksa, authorities should proceed accordingly.
However, he warned against the possibility of arrests being used as a distraction from other alleged scandals or governance failures.
The MP also expressed disappointment over remarks he attributed to President Anura Kumara Dissanayake earlier in the week, saying that while he respected the office of the President, he regretted comments that he believed portrayed the country in a negative light.
Towards the end of his speech, Marikkar referenced another controversy often described as the “323 container scam,” suggesting that the coal procurement issue formed part of a broader pattern of alleged mismanagement.
“You let people go to a dream world and then you can’t get the job done,” he said, criticising what he described as a gap between political rhetoric and policy execution.
The allegations surrounding the coal imports have added to ongoing debates about transparency and governance within Sri Lanka’s energy sector, particularly at a time when the country is attempting to stabilise its economy and rebuild investor confidence following years of financial turbulence.
As discussions continue in Parliament, the issue is likely to draw further scrutiny from regulators, policymakers, and the public alike, especially given its potential implications for electricity supply, fiscal management, and long-term energy policy.