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160 Million Rupee Diesel Gap Triggers Probe at Norochcholai Plant

An internal investigation has been launched into a significant diesel discrepancy at the Lakvijaya thermal power station in Norochcholai, with concerns raised over fuel management and accountability in public resource expenditure.

LSN Sri Lanka · 30 September 2026

Auditors have identified a shortfall exceeding Rs 160 million in diesel supplied to the Lakvijaya power plant, prompting scrutiny of fuel procurement and tracking systems at the state-owned facility. The discrepancy emerged during a routine internal audit examining diesel deliveries from the Kolonnawa and Sapugaskanda refineries to the Norochcholai generating station.

The investigation focuses on controls governing fuel purchases for electricity generation and the mechanisms through which public funds are managed within the power sector. Officials are examining records of fuel acquisitions and consumption at the plant to establish the source and extent of the fuel shortfall.

The findings underscore wider concerns about financial oversight in Sri Lanka's energy infrastructure. The Ceylon Electricity Board, which operates the facility, has initiated a detailed review of procurement procedures and inventory management protocols to prevent similar discrepancies in future.

The Lakvijaya plant is a critical component of the island's power generation capacity, providing substantial baseload electricity to the national grid. The probe's outcome may influence operational procedures and auditing practices across the state power utility's thermal generation facilities.