Govt. Retains US$ 37M in Coal Dispute; Rs. 8.5B for CEB VRS Payments 📈

The Ministry of Power has announced significant financial measures concerning coal procurement disputes and the ongoing restructuring of the energy sector. • Coal Quality Dispute: The Government has withheld over US$ 37 million (approx. Rs. 10 billion) from suppliers. This includes US$ 22 million in fines and US$ 15 million from performance bonds across 18 shipments. • Loss Assessment: Final losses are pending technical evaluations based on electricity generation efficiency. Retained funds aim to cover potential financial hits once the final shipment is utilized. • CEB Restructuring: A total of Rs. 8.5 billion has been allocated to compensate 1,896 former employees who accepted the Voluntary Retirement Scheme (VRS) during the unbundling of the Ceylon Electricity Board. • Payment Structure: Treasury funds will facilitate payments this week. Employees in transmission and generation entities will receive full settlements, while those in the National System Operator and distribution arms will receive an initial 50% payout. • Economic Context: The CEB ceased operations in March 2026, transferring assets to six successor entities. Despite the move, previous estimates suggested the unbundling could lead to a Rs. 10.6 billion loss in economies of scale. _Note: Coal figures are based on provisional assessments pending final technical consumption data._