Wednesday May 20, 2026
Wednesday May 20, 2026
Wednesday, 20 May 2026 06:09 - - {{hitsCtrl.values.hits}}
Deputy Energy Minister Arkam Ilyas yesterday announced that the Government has imposed penalties amounting to $ 27 million on the first 15 coal shipments received under a long-term supply contract after laboratory tests found the imported coal failed to meet required specification.
Addressing a media briefing, he said the penalties were imposed on shipments supplied under a term contract involving 19 consignments, of which 17 have already arrived in the country with delays after tests revealed lower Gross Calorific Value (GCV) levels than specified.
“We have imposed a $ 27 million penalty from the first 15 shipments,” he said, noting that this marked the first occasion Sri Lanka had imposed fines for delayed coal deliveries.
Govt. slaps...
The controversy centres around coal imports by Indian company Trident Chemphar Ltd., for the 900 MW Norochcholai Power Station, also known as the Lakvijaya Coal Power Plant, the country’s main base-load electricity generation facility.
Authorities allege that the supplier imported substandard coal from South Africa while relying on test certificates issued by an Indonesian laboratory whose accreditation had reportedly expired.
Last week, Ilyas disclosed that the Government had withheld more than $ 37 million from coal suppliers as investigations into the disputed shipments continued.
He said the authorities had retained $ 22 million in fines in addition to $ 15 million from supplier performance bonds. “As of today, 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,” he said (https://www.ft.lk/front-page/Govt-withholds-over-37-m-from-coal-suppliers-amid-quality-dispute-Deputy-Power-Minister/44-791783).
Meanwhile, Energy Minister Anura Karunathilaka said the Government would not pay any demurrage charges linked to delays in unloading the shipments.
“All the shipments we ordered have arrived. There is an issue of delay. A total of 19 shipments are from the term contract and five are from emergency purchasing,” Karunathilaka added.
He noted that several shipments originally expected by April had only arrived recently, partly due to rough sea conditions that delayed unloading operations.
“The shipments can stay for a longer time for unloading, but we do not have to pay any demurrage,” Karunathilake added.
