Responding to the reports that the People’s Bank was blacklisted by the China, the Bank says it was obliged to be bound by the legal direction of the country. The People’s Bank further elaborates that it has already communicated to the relevant authorities at the Chinese Embassy that the bank is bound by an enjoining order issued by the Western Province Commercial High Courts of Sri Lanka with regard to the trade transaction in question, which precludes the bank from processing of the payment in connection with the rejected Chinese fertilizer consignment.
With regard to the news item being circulated in media on blacklisting People’s Bank further clarifies that the Bank has come to notice that the Economic and Commercial Counselor of Embassy of People’s Republic of China in Sri Lanka has blacklisted the People’s Bank for not effecting the payments for in lieu of a Letter of Credit issued by the bank
The temporary delay in processing the said payment pertaining to the LC is solely due to the bank’s obligation to be bound by the legal directions of the country as a responsible corporate citizen
People’s Bank further assures that once the legal barriers in effect are removed, the LC payment will be effected promptly as per the usual trade practices.
Recently the importer of the organic fertilizer which were tested with pathogenic living matters Ceylon Fertilizer Company obtained a enjoining order from western province commercial high courts to Peoples’ Bank not to effect open letter of credit for due payments to the producing Chinese company Qwigndao Seawin Biotech. This order wa taken in the backdrop of country’s Agricultural authorities rejected these fertilizer due to contain of harmful micro orgnanisms in the tested samples
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