People’s Bank, a state-owned bank in Sri Lanka, has been removed from its blacklist by the China , Chinese Embassy in Colombo said today (11).
In October, the China blacklisted Peopls’ bank following the cout order to restrain the payment of a letter of Credit for the fertilizer imported from Qingdao Seawin Biotech of China after it was found to contain pathogenic bacteria. The restraini8ng order was taken by importing fertilizer company but China blaklisted the bank amidst heavy crticism .
The Chinese Embassy then instructed all Chinese entrepreneurs to refrain from accepting letters of credit issued by the People’s Bank in international transactions with Sri Lanka.
Eventually, the Commercial High Court ruled in favor of the Chinese Fertilizer Shipping Company and the company, and the Chinese Embassy removed the People’s Bank from its black list. Recently peoples bank announced that it released 6.8 Millio USD for Chinese company after the court order.