The government says it has withheld nearly Rs. 915 million in payments to a coal supplier due to concerns over substandard shipments, Minister Bimal Rathnayake said.

He said the withheld amount exceeds the estimated loss caused by the low-quality coal, adding that the financial impact has not fallen on the public or the government.

The Minister made these comments during the special government media briefing held in Colombo today, following the resignation of Energy Minister Kumara Jayakody.

“Due to the lower energy output from the imported coal, there is a loss. But the Public Utilities Commission has clearly stated that this will not be added to electricity bills,” the minister said.

He said payments for three coal shipments, amounting to over Rs. 500 million, have not been made after the consignments failed inspection tests.

“Approximately Rs. 915 million has been withheld from the supplier. Even though losses were estimated at around Rs. 800 million, we have retained a higher amount. Therefore, there will be no loss to the public,” he said.

He added that an additional Rs. 450 million is being held under a performance bond, bringing the total retained amount to approximately Rs. 960 million.

“Any loss will be borne by the supplier. It will not affect the public or the government,” he said.

The minister also noted that penalties are imposed based on established quality standards, and that rejected coal cannot be returned once shipped, making financial recovery through such mechanisms necessary. (Newswire)

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