• LCC seeks dollars from Ministry

While Sri Lanka struggles to secure adequate coal for power generation, the rupee crunch in Colombo has forced the Lanka Coal Company (LCC) to seek funds for coal importation from the Power and Energy Ministry, following the Ceylon Electricity Board (CEB) informing it that it was out of funds.

The Sunday Morning reliably learns that an official request made by LCC requesting funds from the CEB has been turned down due to the severe shortage of money available in CEB accounts.

It is learnt that the funds totalling $ 12.32 million had been requested by the LCC for the payment for the 12th coal shipment, due to arrive in the country tomorrow (6) or the day after (7), and to make another advance payment for a shipment which has to start loading at the loading port.

According to LCC, it has already secured 17 shipments by completing 30% of part payments from the 12th shipment onwards. As of yesterday (4), 11 coal shipments have been unloaded for this year.

The struggle to secure funds to purchase coal came to light at a time when a recently-awarded coal tender failed to come through last week due to an issue with the Indonesian supplier.

Twelve shipments were supposed to come under the tender awarded to the Indonesian company on six months’ credit, according to LCC.

However, when questioned, LCC Chairman Shehan Sumanasekara said the LCC had officially requested the funds from the CEB and since the CEB did not have funds, it had informed the ministry.

“The CEB did not have funds. In such instances, I have to inform the line ministry to obtain funds,” he said, adding that LCC had sought funds for the 12th shipment and another advance payment for a shipment which had to go for loading at the loading point.

Meanwhile, when contacted, CEB Chairman Nalinda Ilangakoon acknowledged that the CEB did not have funds to procure coal as it had been saying for the past several months. “We need a tariff hike to source funds. We are running at a loss,” he said.