The People’s Bank of Sri Lanka has responded to the Chinese Embassy of Colombo’s decision to blacklist the bank.
Responding to the blacklisting, the bank said the payment was halted to a Chinese fertilizer enterprise due to an interim injunction issued by the courts.
The People’s Bank further said action on payments will be taken depending on future court decisions.
Earlier today, the Chinese Embassy in Colombo said the bank has been blacklisted for failing to make the payment according to the Letter of Credit (LOC) and contracts between the bank and a Chinese fertilizer firm.
The Chinese fertilizer enterprise Qingdao Seawin Biotech Group Co., Ltd had requested to get the payment of L/C by People’s Bank of Sri Lanka for stocks of fertilizers.
However, the organic fertilizer samples tested for the presence of harmful pathogens, not once, by twice in tests carried out by Sri Lanka’s National Plant Quarantine Service and Sri Lanka had stated that the Chinese Organic Fertilizer already en route to Sri Lanka, will not be re-tested under any circumstance.
Against this backdrop, Sri Lanka’s State Fertilizer Companies obtained an Enjoining Order against the Chinese company, Qingdao Seawin Biotech, its local agent, and the People’s Bank.
The Chinese Embassy said the order has prevented the People’s Bank from making any payment under a Letter of Credit opened in favour of the Qingdao Seawin Biotech Group Company Ltd.
As a result, the Economic and Commercial Office of the Chinese Embassy in Colombo has decided to blacklist the People’s Bank of Sri Lanka for causing huge losses to the Chinese enterprise. (NewsWire)