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People?s Bank pays Chinese company for disputer fertilizer

07 Jan, 2022

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The People?s Bank of Sri Lanka today paid USD 6.9 million to a Chinese company for a consignment of disputed organic fertilizer.

The payment was made after the Colombo Commercial High Court had dissolved an enjoining order preventing the payment on a Letter of Credit to Qingdao Seawin Biotech Group in Chine.

The order was dissolved on the basis that the Chinese company and the Sri Lankan Government had reached a settlement on the issue.

The Government had earlier suspended the importation of organic fertilizer from Qingdao Seawin Biotech Group Co., Ltd. in September over quality issues, leading to a diplomatic spat between Sri Lanka and China.

The People?s Bank of Sri Lanka was also ordered by court not to pay the Chinese company for the substandard fertilizer.

Later in October the Economic and Commercial Office of the Chinese Embassy in Colombo blacklisted the People?s Bank for failing to make the payment according to the Letter of Credit (LOC) and contracts between the two parties.

Subsequently the Government of Sri Lanka decided to pay US$ 6.7 million to Seawin Biotech for the fertilizer which was rejected by Sri Lanka.?(Colombo Gazette)

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