The Hon. Ravi Karunanayake

¶ 01 Then please ensure the stipulated period is given.

¶ 02 On coal, when answering, everyone referred to load port, discharge port, and Norochcholai. The important point is this: during my tenure, we changed from paying on Load Port Reports to relying on the Discharge Port Report. If issues remained, we also used the Norochcholai plant lab report. If still unresolved, we went to an independent report. This was first done in February 2019, and then included in the first bidding documents. We understood the anomalies and rectified them—beyond sulfur, calorific value, ash, and moisture—we aligned with the CEB’s requirements. I think the Minister will acknowledge that we changed it. You spoke of before and after, but we corrected the needed process: load port, discharge port, and Norochcholai. We also introduced double fines. I see you now using that maximally; but that does not fix what has gone wrong now.

¶ 03 What is needed is a pricing index tied to energy content. It is not enough to fine USD 2 million because 5,900 kcal/kg came as 5,000. Poor quality coal means the thermal plant needs more coal. I urge the Minister to ensure we extract the maximum generation from the thermal plant efficiently.

¶ 04 Nine coal vessels have arrived. For eight of them reports have been presented. Though the coal came from South Africa, the Load Port Report comes from Indonesia—is that lawful? Because of the Load Port certification issue, the Discharge Port Report is essential. The discharge testing was done in India; the first ship’s coal was rejected there. The remaining eight have issues; calorific value is accepted but ash content is rejected. Most importantly, all eight have failed at Norochcholai’s lab. I table the Indian Certificate of Sampling and Analysis, and the eight rejection-related Lakvijaya lab reports.

¶ 05 Why does this matter? Coal can come from India, Australia, Russia, South Africa—each with different ignition energy content. Where 5,900 kcal/kg is required, these shipments are between 5,300–5,700. To produce one kilowatt-hour, 7.73 grams are now needed; per day about 105 tons per unit. We have three units; about 7,500 tons per day are required. Considering climate and shipping lead times, all coal shipments must be planned months ahead.

¶ 06 Some ask, “What is the issue? We have not even started yet.” No—emergency tenders have started, rightly so if needed to maintain generation. The question is why we reached this need. When calorific value drops, for what 100 tons could do, now 115 tons are needed. Generation capacity of 810 MW drops to 720 MW. That deficit must be compensated by other thermal plants, where generation costs are Rs. 60–95 per unit—averaging about Rs. 72.50. The cost impact is billions. That is why we raise these issues.

¶ 07 I know the Minister is carrying a bad brief due to officials’ issues, but you must be accountable. I know these matters; I say this to help you fight.

¶ 08 By implementing direct feeding, the variance between Russian coal earlier and South African coal now could have been minimized. If direct feeding was not done, the problem can be traced. We need solutions, not finger-pointing. For 76 years, both Government and Opposition shouted at each other. Your own Ministers now realize the challenges.

¶ 09 The CEB also has industrial relations problems. You have not answered. Where there should be seven companies, there are four—neither accepting seven nor four. Provide a timeline; implement a VRS and allow those willing to go to leave. Your own discussions with unions have failed, they told me. Provide answers, negotiate with unions. Your Kaduwela Mayor, when in unions, said: “If one small nut loosens, the whole thing will collapse.”

¶ 10 Please act now; otherwise your Government will take two steps forward and three back. The “Diana” cyclone caused Rs. 20.2 billion damage to the CEB; I asked a question—no answer yet. Your cash flow relies on consumers. The opportunity cost of that cash flow is borne by consumers, not the CEB. There are transmission bottlenecks: even if you generate, you cannot transmit; Rs. 2,000 million is needed. LNG is now out of time. For solar, we need the best rate and mandatory Battery Energy Storage Systems. To reduce tariffs, we must bring generation costs to around Rs. 32–40.

¶ 11 Please, without cursing the past, tell us how you will correct the future.

¶ 12 Thank you.