People’s Bank of Sri Lanka has paid US $ 6.9 million to Qingdao Seawin Biotech Group Co, a Chinese-based fertilizer company, for losses incurred due to Sri Lanka refusing two of its shipments.
The decision was taken after the Colombo Commercial High Court quashed the injunction restraining payment to Qingdao Seawin Biotech Group Co., Ltd.
Sri Lanka has rejected two previous shipments, but the enjoining injunction was lifted on Monday (03) after all parties agreed to ship a new standardized consignment of fertilizer.
In September 2021, the government suspended the import of organic fertilizer from Qingdao Seawin Biotech Group Co., Ltd.
The Minister of Agriculture Mahindananda Aluthgamage stated that this decision was taken after the detection of harmful bacteria in the fertilizer samples.
Thereafter refusing to enter a ship transporting from China to Sri Lanka, the government also rejected a new stock of fertilizer.