The Ceylon Electricity Board (CEB) has disclosed a substantial financial loss resulting from the use of substandard coal, in an official letter dated 19th February 2026 (Reference: LVPP/PPM/Admin-8/26-09), submitted to the Parliamentary Sectoral Oversight Committee on Infrastructure and Strategic Development.
According to the report, the losses are linked to eight coal consignments received for the Lakvijaya Power Plant. The estimated direct financial impact of each consignment is as follows:
🔴 Summary of Losses by Consignment (in millions of rupees):
Consignment No. Estimated Direct Loss (Rs. millions)
01st consignment 595.1
02nd consignment 288.5
03rd consignment 1,047.4
04th consignment 865.0
05th consignment 1,144.2
06th consignment 1,197.7
07th consignment 974.9
08th consignment 1,559.3
Total 7,672.1 (Approx. Rs. 767.2 Crores)
🔴 Key Observations from the Report:
Basis of Calculation: The losses were calculated based on the reduction in electricity generation capacity caused by the poor quality of coal. A cost of Rs. 57.53 per unit of electricity was used for the calculation.
Quality Tests: Laboratory reports for consignments 1 to 6 were submitted as of 11th February 2025, while the remaining reports have already been forwarded to the relevant departments.
Fines: Any fines to be collected from the coal supplier are not included in this calculation. Therefore, the net loss may be revised after recovery of such fines.
The report highlights the serious financial repercussions resulting from mismanagement of public resources in power generation.
Date: 19th February 2026
Source: Office of the General Manager, Ceylon Electricity Board
