The court order barring payment for Chinese fertilizer stocks is dissolved

The Colombo Commercial High Court has dissolved the enjoining order preventing the payment on Letter of Credit to the Chinese company that shipped a disputed consignment of organic fertilizer to Sri Lanka, as all parties had agreed for a settlement.

 

The Ceylon Fertilizer Company (CFC) had previously secured two enjoining orders from the Colombo Commercial High Court against Seawin Biotech, its local agent and the state-run People’s Bank, preventing the payment on Letter of Credit.

 

During a previous proceeding, Additional Solicitor General Susantha Balapatabendi, who appeared on behalf of the CFC, told the court that China-based Qingdao Seawin Biotech Group Co., Ltd. had shipped a fertilizer consignment, which is a partial shipment worth more than a billion rupees that was procured through a tender process initiated by the Agriculture Ministry.

 

As per the terms of the contracts, the payment for the controversial organic fertilizer shipment was slated to be made through a Letter of Credit established via the People’s Bank.