A Rs.160 million-plus discrepancy in diesel stocks at the Lakvijaya Power Plant in Norochcholai has triggered an internal investigation, putting the spotlight on fuel controls, inventory management and the safeguarding of public funds used for electricity generation.
The discrepancy emerged during an internal audit examining diesel supplied to the power plant from the Kolonnawa and Sapugaskanda fuel terminals. Investigators have so far identified five transactions two in December 2025 and three in January 2026—in which quantities recorded as delivered could not be fully reconciled with the plant’s physical diesel stocks.
The inquiry is now widening beyond the individual transactions to determine whether the apparent shortages were isolated incidents or reflected weaknesses in the plant’s fuel-receiving and accounting procedures over a longer period.
One of the transactions under detailed examination reportedly occurred on January 16. Official records indicated that 10 diesel bowsers had arrived at the plant, but subsequent checks suggested that the corresponding fuel stock represented only nine bowsers.
The discrepancy has raised a fundamental question: how could a consignment recorded as received and entered into official records fail to correspond with the physical inventory subsequently available at one of the country’s most strategically important power-generating facilities?
A storekeeper responsible for the relevant fuel operation has reportedly been temporarily removed from those duties while the investigation continues. This measure, however, does not by itself establish individual responsibility, with investigators still required to determine how the transactions were authorised, received, recorded and certified.
Officials are reportedly examining historical records to establish whether similar discrepancies occurred previously. If the review identifies additional unexplained shortages, the financial exposure could rise substantially above the Rs.160 million currently identified.
The investigation is consequently reconstructing the entire fuel trail from the moment diesel leaves the terminals to its arrival and acceptance at Norochcholai.
Terminal dispatch records, tanker movements, plant-entry registers, receiving documentation and physical stock measurements are being compared to determine precisely how much fuel was dispatched, how much arrived and how much was ultimately accounted for.
This audit trail could prove crucial in establishing whether established safeguards were followed and identifying every official involved in approving, receiving or certifying the consignments.
Documents connected to the inquiry were reportedly transferred from Norochcholai to the company’s Colombo head office on September 26 for further examination, with electricity-sector security personnel assisting in the transfer.
The audit has also reportedly uncovered expired chemical stocks worth several hundred thousand rupees in the plant stores, raising the possibility that inventory-control weaknesses may extend beyond diesel management.
The matter was reportedly brought before the Puttalam Police Special Crimes Investigation Unit on September 26.
Lakvijaya Power Plant Manager Nalaka Kumara confirmed to Puttalam-based journalist Hiran Priyankara Jayasinghe of The Island Financial Review that an investigation was under way but declined to disclose further details.
The immediate issue is financial accountability. If fuel was paid for but was not actually received, the state could have incurred expenditure without obtaining the corresponding fuel—turning an inventory discrepancy into a potentially significant public-finance concern.