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Low-quality coal pushes power plant losses to Rs. 8.5 Bn

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The procurement of substandard coal for the Lakvijaya Power Plant has led to a sharp rise in coal consumption for electricity generation and caused an estimated loss of Rs. 8,497 million to the government, according to a report by the Public Utilities Commission of Sri Lanka (PUCSL).

National Secretary of the Electricity Consumers’ Association, Sanjeewa Dhammika, said the PUCSL report had revealed that the use of low-quality coal had severely affected both the operational efficiency of the power plant’s generation units and its financial performance.

According to the report, the production of one unit of electricity using coal supplied by the previous supplier required only about 0.046 kilogrammes of coal, whereas the same unit produced using coal from the new supplier required 0.093 kilogrammes.

“This means coal consumption per electricity unit has increased by 102 per cent, clearly indicating a significant deterioration in the quality of the coal supplied,” Dhammika said.

He added that the PUCSL report had estimated the financial loss incurred by the government from the first to the ninth coal shipment at Rs. 8,497 million, mainly due to the increased coal consumption resulting from the inferior quality of the fuel.

The report has also pointed to possible violations of the coal supply agreement. According to Clause 8 of the agreement, coal stocks should not be used until their quality has been verified through the required testing procedures.

However, the report reveals that the coal shipments in question had been used for electricity generation before the completion of the mandatory quality tests.

Dhammika stressed that under such circumstances there was no justifiable basis to increase electricity tariffs, warning that the public should not be burdened with the cost of losses arising from procurement irregularities.

“Do not attempt to increase electricity tariffs. The public cannot afford it. These losses should be recovered personally from those responsible, including the Minister, the Secretary to the Ministry, and the officials who served on the procurement committee,” he said. He also called on the Attorney General’s Department to take immediate legal action over what he described as knowingly causing financial losses to the state.

Dhammika urged the Attorney General to file indictments and ensure that those responsible for the alleged irregularities are held accountable under the law.

By Anuradha Hiripitiyage ✍️



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PSTA worse than PTA: FSP

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The Frontline Socialist Party (FSP) yesterday accused the government of seeking to use the proposed Protection of the State from Terrorism Act (PSTA) to suppress popular political activity, claiming that some of its provisions were more repressive than those of the Prevention of Terrorism Act (PTA).

FSP Education Secretary Pubudu Jayagoda told a media briefing, in Nugegoda, that the definition of terrorism in the Bill was so broad that it could be used to label almost any form of popular political activity as terrorism.

He said the Bill’s approach to defining terrorism was based largely on attempts to compel a government, or an international organisation, to do, or refrain from doing something, rather than on internationally recognised criteria, such as killings, causing serious bodily harm, kidnapping or acts intended to spread terror among the public.

Jayagoda also alleged that the Bill transferred substantial powers from the judiciary to the executive, while extending powers of arrest, investigation and detention to the armed forces, in addition to the police.

He claimed that the government had sought to portray the Bill as a replacement for the PTA while retaining or introducing provisions that could facilitate political victimisation and repression.

The FSP also questioned the government’s decision to proceed with the Bill, despite having previously sought public views on an earlier draft.

Jayagoda said a draft had been published earlier this year, with the period for public submissions ending on February 28, but the Bill subsequently gazetted was essentially the same draft with some provisions rearranged.

Jayagoda also referred to a letter reportedly sent by Attorney-at-Law Saliya Peiris, a member of a Committee, chaired by President’s Counsel Rienzie Arsecularatne, that had been appointed to draft the legislation. He said Peiris had stated, in the October 06 letter, that changes had been made to the draft prepared by the Committee.

“This means that even the Committee, appointed to prepare the Bill, was a deception,” Jayagoda alleged.

He said that the PSTA was fundamentally similar to the Anti-Terrorism Bill introduced by the previous government, in 2023, which the National People’s Power (NPP) opposed and challenged in court.

“If the NPP opposed that Bill then and is now bringing the same legislation before Parliament, the government must explain its position,” he said.

Jayagoda called on NPP MPs to oppose the PSTA in Parliament and urged trade unions and other groups to build a broad public movement against the legislation.

He challenged the government to an open debate on the Bill.

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Shiranthi R remanded until 13 Oct.

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Former First Lady Shiranthi Rajapaksa was yesterday remanded until 13 October after being produced before the Colombo Magistrate’s Court following her arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

Shiranthi, wife of former President Mahinda Rajapaksa, was arrested at her residence on Poorwarama Road, Kirulapone, after CIABOC officers recorded a statement from her for nearly two hours.

According to the CIABOC, the arrest was made over allegations that Rs. 10 million obtained from the National Savings Bank through the Siriliya Saviya organisation was misappropriated.

The money was allegedly obtained to provide a Computed Tomography (CT) scanner to the children’s hospital. Investigators allege that the scanner was not provided and that the funds were instead unlawfully used.

CIABOC is investigating alleged offences under the Public Property Act and corruption-related provisions in connection with the transaction and other financial activities involving Siriliya Saviya, which was headed by Rajapaksa.

Rajapaksa returned to Sri Lanka on Monday night on a flight from Malaysia after travelling overseas for medical treatment. She left for Singapore on 16 September after being admitted to a private hospital in Colombo on 15 September following an illness.

She had been due to appear before the Financial Crimes Investigation Division (FCID) on 13 October in connection with its investigation into the financial affairs of Siriliya Saviya.

Meanwhile, her lawyers filed an anticipatory bail application before the Maligakanda Magistrate’s Court on Monday, seeking an order preventing her arrest in connection with the FCID investigation.

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Former NSB Chairman Kariyawasam granted bail

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Former National Savings Bank (NSB) Chairman Pradeep Kariyawasam was yesterday granted bail by the Colombo Magistrate’s Court following his arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

Kariyawasam, husband of former Chief Justice Shirani Bandaranayake, was arrested in connection with the Bribery Commission’s investigation into the ‘Siriliya Saviya’ account linked to former First Lady Shiranthi Rajapaksa.

The investigation concerns financial activities involving the Siriliya Saviya initiative, which was headed by Rajapaksa, wife of former President Mahinda Rajapaksa.

CIABOC is continuing investigations into the alleged financial irregularities relating to the account.

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