Court dissolves order preventing payment to Chinese company

Court dissolves order preventing payment to Chinese company

The Colombo Commercial High Court today dissolved an order preventing the payment to a Chinese company for imported fertilizer.

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)

Previous Post Next Post
Disclaimer: This news appearing on Yazh News Media has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor. For further clarification contact us on Email.