Colombo: A Chinese fertiliser company has intensified its fight with Sri Lanka over rejection of its fertiliser shipment by Colombo and has even proposed imposing tough economic and trade sanctions, the Daily Mirror reported.
The Government of Sri Lanka has already decided to pay US$ 6.7 million to the Qingdao Seawin Biotech Group Co., Ltd for the 20,000 tonnes of fertilizer which was rejected by Sri Lanka after local tests identified the presence of harmful bacteria.
Though the Sri Lanka government agreed to pay compensation to the Chinese company after much delay, the Daily Mirror has learnt that Seawind Biotech is continuing its war on Sri Lanka over the damage the issue has caused to its reputation.
Top officials of Seawin Biotech have reportedly approached the Shandong Provincial Government to exert pressure on the Chinese Government to impose sanctions on Sri Lanka.
Chinese companies have also reportedly been advised to obtain advanced payments before dispatching any products to Sri Lanka.
Another official said that China has been urged to impose restrictions on the import of tea from Sri Lanka.
The Sri Lankan government had suspended the import of organic fertilizer from Qingdao Seawin Biotech Group Co., Ltd. in September last year over the presence of harmful bacteria, leading to a diplomatic spat between Sri Lanka and China.
The People’s Bank of Sri Lanka was also ordered by the court not to pay the Chinese company for the substandard fertilizer.
Later in October, the Economic and Commercial Office of the Chinese Embassy in Colombo blacklisted the People’s Bank for failing to make the payment according to the Letter of Credit (LOC) and contracts between the two parties.
The issue has already been discussed at the highest levels of the Governments between both countries and is expected to be further discussed during a visit to Sri Lanka by Chinese Foreign Minister Wang Yi, likely in January.