Sri Lanka seeks AG’s advice to pay China for disputed fertilizer

Sri Lanka seeks AG’s advice to pay China for disputed fertilizer

The Sri Lankan Government has sought the advice of the Attorney General (AG) to pay a Chinese company for a disputed stock of fertilizer.

Agriculture Minister Mahindananda Aluthgamage said that the Government has decided to pay USD 6.7 million to the Chinese fertilizer company, Seawin Biotech.

The advice of the AG has been sought to make the payment, which includes a cash deposit placed by the company.

Seawin Biotech has also been requested to take the disputed stock of fertilizer back to China and replace it with a fresh stock which meets Sri Lanka’s specifications.

The decision to pay the company comes after the Chinese company had decided to sue Sri Lanka for approximately $49.7 million for rejecting imported fertiliser over quality issues.

The dispute, which started in early November, centers on Sri Lankan officials’ rejection of the Chinese fertilizers, citing what Chinese sources called shady claims of quality issues.

The Colombo Commercial High Court had issued an interim order preventing the payment to the Chinese company for the contaminated fertilizer. (Colombo Gazette)

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