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People’s Bank to pay USD 6.7 mn to Chinese fertilizer company on Friday (7)

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COLOMBO (News 1st); The People’s Bank of Sri Lanka announced that a sum of USD 6.9 Million will be paid to Qingdao Seawin Biotech Group Co., Ltd, on Friday (7) as per the Letter of Credit opened for the purchase of organic fertilizer.This announcement comes 48 hours after the Colombo Commercial High Court 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.Sri Lanka’s Fertilizer companies informed the court that they reached a settlement with regard to the controversial Chinese Organic Fertilizer shipment.The terms that the plaintiff companies and the defendants, namely Qingdao Seawin Biotech Group Co., Ltd, its local agent, and People’s Bank, have agreed to for the settlement are as follows.1.

People’s Bank would release 75% of the consignment value to Qingdao Seawin Biotech Group Co., Ltd in terms of the Letter of Credit.2.

Qingdao Seawin Biotech Group Co., Ltd will obtain and provide certification for the raw material ingredients, and arrange fresh samples of a new consignment of organic fertilizer to be tested.In terms of the contract, the samples should be free of pathogens and to ship the consignment only after the tested samples have been found to be in compliance with the Plant Protection Act, No.

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