An Echelon Media Company
Monday April 15th, 2024

Sri Lanka blocks payment to China Qingdao Seawin Biotech over fertilizer with bugs

ECONOMYNEXT – Sri Lanka-based Ceylon Fertilizer Company Limited had got a court order to block payment to Qingdao Seawin Biotech over shipment of organic fertilizer which was contaminated with bugs.

“The enjoining order has prevented the People’s Bank from making any payment under a Letter of Credit opened in favour of the Chinese company, Qingdao Seawin Biotech Group Co., Ltd,” a statement from the President’s office said.

Colombo Commerical High Court had issued the order on October 22, against the Qingdao Seawin Biotech, its local agent and the People’s Bank.

Though the Chinese firm was supposed to ship sterile organic fertilizer when it won the tender, in the shipping document it had said there may be micro-organisms.

“The National Plant Quarantine Services had tested the sample sent to them and had confirmed the presence of organisms, including certain types of harmful bacteria,” the statement said.

“The consignment is a partial shipment worth more than a billion rupees that was procured through a tender process initiated by the Ministry of Agriculture.

“The Court was informed that even though the Chinese Company was required to ship sterile organic fertiliser under the tender contract, it had admitted in its shipping advice that the consignment may contain microorganisms.”

Chinese fertilizer contaminated with Erwinia has been hotly debated in Sri Lanka parliament. (Colombo/Oct23/2021)

Leave a Comment

Your email address will not be published. Required fields are marked *

Leave a Comment

Leave a Comment

Cancel reply

Your email address will not be published. Required fields are marked *

Sri Lanka to discuss two contentious points with bondholders: report

ECONOMYNEXT – Sri Lanka and sovereign bondholders are to discuss two matters in the near future which the two sides failed to reach agreement at March talks in London, a media report quoting a top aide to President Wickremesinghe as saying.

Sri Lanka and bondholders had discussed four matters on restructuring international sovereign bonds in late March and agreement had been reached on two, President’s Chief of Staff Sagala Ratnayake was quoted as saying on state-run ITN television.

A restructuring proposal by bondholders was not in line with IMF requirements, and Sri Lanka had sent a counter proposal, he said.

The matters will be discussed at round of talks in the near future.

Sri Lanka was optimistic of reaching an agreement with the bondholders before June, officials have said.

According to matters already in the public domain, sovereign bond holders are keen to get a bond tied to dollar gross domestic product, as they feel IMF growth projections are too low.

In past re-structuring so-called value recovery instruments, a type of warrant, gave their owners extra payments if a country did better than expected and were tied to items like oil prices.

Bondholders had initially proposed bond which would have a lower hair cut initially, and it will have additional hair cuts if growth is low (about 3.1 percent) as projected in an IMF debt sustainability analysis. (Colombo/Apr15/2024)

Continue Reading

BIMSTEC Secretary General visits Sri Lanka, discusses regional cooperation

ECONOMYNEXT – The Secretary General of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), discussed measures to enhance regional cooperation, during his visit to the island last week.

Ambassador Indra Mani Pandey, Secretary General of BIMSTEC visited Sri Lanka from 07 – 12 April 2024, following his assumption of office as Secretary General of BIMSTEC in January this year.

The Secretary General “met with senior officials of relevant Ministries/Agencies to discuss measures to enhance regional cooperation under various BIMSTEC initiatives,” the Foreign Ministry said in a statement.

Several BIMSTEC countries have bilateral trade agreements, such as Sri Lanka and India, Thailand and Myanmar, Sri Lanka and Thailand, but no collective regional agreement to enable intra-regional leverage.

During the visit, Secretary General Pandey held discussions with Ministry of Foreign Affairs officials and paid courtesy calls on the President and the Minister of Foreign Affairs.

Secretary General Pandey participated at an event on “Regional Cooperation through BIMSTEC” organized by the Lakshman Kadirgamar Institute (LKI) on 9 April. (Colombo/April15/2024)

Continue Reading

Sri Lanka rupee closes weaker at 299.00/10 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 299.00/10 to the US dollar in the spot forex market on Monday, from 298.50/55 on Wednesday, dealers said, while bond yields were broadly steady.

A bond maturing on 15.12.2026 closed stable at 11.30/35 percent.

A bond maturing on 15.09.2027 closed stable at 11.90/12.00 percent.

A bond maturing on 15.12.2028 closed at 12.10/20 percent up from 12.10/15 percent.

A bond maturing on 15.09.2029 closed stable at 12.20/40 percent. (Colombo/Apr15/2024)

Continue Reading