ECONOMYNEXT – Sri Lanka’s state-run People’s Bank has settled a disputed payment to a fertilizer company in China clearing the decks ahead of a visit by the foreign minister of the communist state.
The banks said it had paid 6.873 million dollars to Quindao Biotech Group on a letter of credit for a organic fertilizer consignment ordered by Ceylon Fertilizer Company and Colombo Commercial Fertilizer Company Ltd.
The fertilizer company got a court order barring payments, after a consignment of fertilizer was found with Erwinia bacteria on a post-shipment examination.
The company insisted that the fertilizer had been cleared in a pre-shipment examination. China’s embassy in Colombo said People’s Bank was ‘blacklisted’ for not paying the LC.
The court orders blocking payment had been vacated on January 03, the People’s Bank said. (Colombo/Jan08/2021)