The Sri Lankan government has withheld more than Rs. 9 billion in payments to a coal supplier over concerns about substandard shipments, according to Minister Bimal Rathnayake.
He stated that the withheld amount exceeds the estimated financial loss caused by the low-quality coal, ensuring that neither the public nor the government will bear any cost.
The remarks were made during a special media briefing in Colombo, following the resignation of Energy Minister Kumara Jayakody.
The Minister explained that although the lower energy output from the imported coal resulted in losses, the Public Utilities Commission of Sri Lanka has confirmed that these costs will not be passed on to electricity consumers.
He revealed that payments for three coal shipments, totaling over Rs. 5 billion, have been withheld after the consignments failed quality inspections.
In total, approximately Rs. 9.15 billion has been retained from the supplier, surpassing the estimated loss of around Rs. 8 billion.
The retained amount also includes a performance bond of USD 15 million, equivalent to about Rs. 4.5 billion, which provides additional financial protection.
The Minister emphasized that any losses will be borne entirely by the supplier, not the public or the government.
He further noted that penalties are imposed based on established quality standards, and since rejected coal cannot be returned once shipped, financial recovery through such measures is essential.
