Norochcholai:Sri Lanka The country's two primary electricity generation entities have suffered a combined loss of approximately 15.765 billion Sri Lankan rupees, equivalent to around 47.7 million U.S. dollars, due to the supply of substandard coal during 2025 and 2026.

According to Namibia Press Agency, Energy Minister Anura Karunathilaka reported that the National System Operator bore an extra expense of 8.572 billion rupees to purchase electricity that could not be produced due to the inferior quality of the coal.

Additionally, Electricity Generation Lanka incurred a loss of 7.192 billion rupees for acquiring extra coal, performing necessary maintenance, and covering increased handling costs. Karunathilaka assured that the financial impact would not be transferred to electricity consumers.

The Lanka Coal Company has managed to recover 16.989 billion rupees from the supplier through performance guarantees and penalties. The quality concerns primarily involve coal supplies to the Lakvijaya Power Plant in Norochcholai.

A presidential commission of inquiry has been established to examine the previous coal procurement and supply processes, as well as the circumstances related to the allegations.