In response to the stance taken by the Economic and Commercial Office of the Chinese Embassy in Sri Lanka to blacklist People’s Bank, the People’s Bank said the decision to stop the payment to the Chinese Company was taken following an interim injunction issued by the court. The bank said steps to make payments would be taken based on future court decisions.
The Economic and Commercial Office of the Chinese Embassy in Sri Lanka had said that People’s Bank was blacklisted for failing to make the payment according to the Letter of Credit and the contacts between two parties.
The Embassy said the Chinese fertiliser enterprise Qingdao Seawin Biotech Group Co., Ltd requested to get the payment of L/C by People’s Bank of Sri Lanka according to the contracts.