The Lanka Electricity Generation Private Company (EGL) is estimated to have suffered a direct financial loss of Rs.5.68 billion within four months due to the coal deal involving Trident Chemphar, which has been accused of supplying low-quality coal to Sri Lanka.
According to a report published by The Sunday Times, EGL calculated the loss based on operational data recorded between March 1 and June 30, 2026.
The report submitted this week to Parliament’s Sectoral Oversight Committee on Infrastructure and Strategic Development (SOC) states that the estimate covers only the financial loss caused by additional coal consumption resulting from a specific coal consumption rate that was higher than the historical average under normal operating conditions.
The cost of meeting the electricity shortfall caused by burning low-quality coal through alternative energy sources has not been included in the Rs.5.68 billion estimate. The report states that the financial impact of using alternative generation sources could not be assessed because the specific energy sources used to meet the shortfall were not known.
The committee had also instructed EGL to submit the estimated cost of abnormal wear and tear and damage caused to the power plant and equipment by the use of low-quality coal up to June 30, 2026. However, EGL said it had not estimated such costs because there was currently insufficient evidence to establish that any abnormal deterioration or damage had occurred.
Meanwhile, Rs.1.33 million had been spent on “routine maintenance” during the four-month period, which was stated to have potentially resulted from the use of low-quality coal. The expenditure included maintenance of coal mills, removal of raw coal and pyrites—heavy mineral impurities that are too hard to grind—and clearing coal blockages.
The report does not state how much the Lanka Coal Company (LCC) had paid Trident Chemphar. However, EGL informed the committee that it had forfeited the supplier’s performance bond worth US$14.75 million.
According to a report submitted by EGL, it had fully recovered US$51,271,390.14, equivalent to Rs.16,977,767,155.43 based on the Central Bank of Sri Lanka’s buying rate published on August 3, 2026. The report states that the amount remains subject to subsequent adjustments in accordance with contractual requirements, including refunds arising from reference sample testing.
Under the 2025-26 tender conditions, LCC had agreed to pay 80% of the total amount to the supplier after shipment, based on the Bill of Lading quantity, quality reports from the loading port and the required documentation. The remaining 20% was to be paid after the coal was unloaded in Puttalam and its final quantity and quality were verified.
