It is reported that the People’s Bank of Sri Lanka has been blacklisted by the Economic and Commercial Office of the Chinese Embassy in Sri Lanka for failing to make the payment according to the Letter of Credit (LC) and the contracts between two parties. All Chinese enterprises are reminded to tighten risk control and avoid accepting L/C issued by the People’s Bank of Sri Lanka in international trade with Sri Lanka, said the Embassy. Recently, the Chinese fertilizer enterprise Qingdao Seawin Biotech Group Co., Ltd requested to get the payment of LC by People’s Bank of Sri Lanka, but disregarding the contract obligation, the business rules and international trade customs, the People’s Bank of Sri Lanka defaulted the payment of LC and caused huge losses to the Chinese enterprise, said the Chinese Embassy. However, this has happened because the organic fertilizer samples from the Chinese company had tested for the presence of harmful pathogens twice in tests carried out by Sri Lanka’s National Plant Quarantine Service. Sri Lanka’s Agriculture Ministry had rejected the fertilizer order and issued an order denying entry to the ship carrying the order to Sri Lankan ports. Against this backdrop, the Sri Lanka’s State Fertilizer Company had obtained an Enjoining Order against the Chinese company, its local agent, and the People’s Bank. That order had prevented the People’s Bank from making any payment under a LC opened in favor of the Qingdao Seawin Biotech Group Company Ltd. Read more here: https://www.newsfirst.lk/2021/10/29/peoples-bank-blacklisted-by-chinese-embassy/.