Govt. withholds over $ 37 m from coal suppliers amid quality dispute: Deputy Power Minister

Deputy Power Minister Arkam Ilyas yesterday said the Government has withheld over $ 37 million from coal suppliers, including fines and performance guarantees, as authorities assess losses linked to disputed coal shipments used for power generation.

Addressing the media, Ilyas said the Government has so far received 18 coal shipments, of which 16 consignments were supplied by the first supplier, while the remaining two shipments came from a second supplier.

“As of today (11), 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.

Based on current exchange rates, he said the withheld amount exceeds Rs. 10 billion.

When asked whether the Government had suffered a financial loss due to the coal issue, the Deputy Minister acknowledged that losses had occurred, but said the final figure is yet to be determined.

“These funds are being held because we think there is a loss. However, we cannot confirm the exact amount yet until calculations are completed based on how electricity had to be generated, and only after the final coal shipment is fully utilised,” he said.

Ilyas said only after the last shipment is consumed and the full technical and financial assessment is completed can authorities determine whether the retained funds fully cover the losses or whether any balance remains under the supply agreement.

Power Minister Anura Karunathilaka also called on all parties, including the Opposition, concerned consumer groups, and individuals who have information regarding the coal shipments, to submit their insights to the Presidential Commission for proper investigation.

Govt. allocates Rs. 8.5 b for CEB VRS employees

The Government will release Rs. 8.5 billion in compensation to nearly 1,900 former employees who accepted a voluntary retirement scheme (VRS) during the restructuring of the Ceylon Electricity Board (CEB). 

Addressing the media, Power Minister Anura Karunathilaka yesterday said a total of 1,896 employees who accepted a VRS after the unbundling of the CEB into six State-owned entities will receive their long-delayed payments through Treasury allocations.

“We have taken a decision to settle these payments through the Treasury and expect Cabinet approval,” the Minister said, adding that disbursements could begin within the week once formal approval is granted.

The employees who accepted the VRS are currently attached to newly created entities including; Electricity Distribution Lanka Ltd., (EDL), Electricity Generation Lanka Ltd., (EGL), National Transmission Network Service Provider Ltd., (NTNSP), and National System Operator Ltd., (NSO).

“Employees of the NSO and EDL will initially receive 50% of their dues from the Treasury, while workers attached to the remaining entities will receive full settlement through Treasury funds,” the Minister said.

Karunathilaka acknowledged that the compensation had been delayed due to the financial constraints faced by the CEB.

The CEB officially ceased operations in March following the sector restructuring, with its operations transferred to six successor companies, including Energy Ventures Lanka and a dedicated employee funds entity.

In its January tariff submission, the former CEB had warned that the unbundling process could result in Rs. 10.6 billion in lost economies of scale, raising concerns over the long-term financial implications of the power sector overhaul.