Coca Cola could face compensation call over claimed leak

- Aug 24, 2015

Multinational company Coca-Cola is pressurizing the government after the Central Environmental Authority cancelled the environment protection licence of its Kaduwela factory.

An underground fuel pipeline of the factory leaked into the Kelani River a week ago, causing a major contamination.

The factory was also fined nearly Rs. 01 billion.

US government officials are exerting pressure on Sri Lanka to suspend the cancellation and grant some concessions to the factory.

An official at the Sri Lankan embassy in the US has telephoned a government official and asked that the fine be reduced.

The CEA says there is clear evidence the leakage has caused considerable environmental pollution, and the cancellation is pending an evaluation of the damage.

Coca-Cola claims it had repaired the damage very quickly on the same day of the leakage happened after seeking advice from the CEA and the Water Board.

The Water Board announced a water cut to prevent the distribution of contaminated water.

Together wit the CEA and the Marine Environment Protection Authority, it joined forces to flush away water from the affected area; floaters were used to sponge the oil out of the river.

Before restoring water supply officials carried out a grease content evaluation that showed grease at 0.2 mg per litre, the maximum acceptable level for drinking water, sundaytimes.lk reports.

The Board’s deputy general manager, western production, Ranjith Perera, who is based at the Ambatale plant, said that despite the beverage company claiming that there had been a leak in one of its oil tanks his officers had not been able to find anything that would support this explanation.

“Officers from the WSDB, CEA and the police went to the company to check and were not able to find the source of the leak. Even if there was a leakage it is not acceptable,” Perera said, adding that the company was CEA-approved and thus should have precautionary measures planned in case of such a leak.

CEA Chairman Prof. Lal Dharmasiri said the swift action taken to stop the oil from wholesale contamination of the water supply had cost the government more than anticipated. Apart from stopping water distribution, employing people and using resources to lift off the oil from the river the CEA also had to release water from the Laxapana reservoir to flush out the impure water.