29 August 2022 08:48 am Views - 148
By Easwaran Rutnam
A Chinese fertilizer company involved in a dispute with Sri Lanka has refused to budge and had demanded that Sri Lanka respect the spirit of the agreement reached between both parties. Qingdao Seawin Biotech Group reminded the Sri Lankan authorities of a supplementary agreement reached between both parties in February 2022. “According to the supplementary agreement reached between our company and Sri Lankan side in February 2022, both sides shall continue with the organic fertilizer project,” Qingdao Seawin Biotech Group Director Ms. Song Hai Mei said.
Both sides went to court after Sri Lanka accused the Chinese company of providing poor quality fertilizer.
However, both parties later reached a settlement in the Sri Lankan Commercial High court and the Chinese company withdrew the lawsuit in China.
“It is reported that our company took the Performance Bond back according to the ruling of the Chinese court, which is inconsistent with the fact. The Performance Bond is automatically invalid after expiration because the relevant parties of Sri Lanka failed to fulfil the commitment of L/C renewal, resulting in the expiry of the L/C,” Song Hai Mei said.
The Chinese company said that its organic fertilizer products fully comply with the contract, and the project is fully qualified to continue.
“Since the beginning of 2022, our company has been constantly urging relevant parties in Sri Lanka to promote the implementation of the project as soon as possible according to the supplementary agreement reached in February 2022. Unfortunately, up to now, we have not obtained any substantial response or positive action from Sri Lanka,” the Chinese company added.
Qingdao Seawin Biotech Group said that the project has caused great losses to the company and the inaction by Sri Lanka has led to a shortage of fertilizer in Sri Lanka and has also damaged the interests of Sri Lankan farmers.
“It is reported that our company has rejected the proposal of providing chemical fertilizer instead of organic fertilizer put forward by the relevant parties of Sri Lanka. We hereby reiterate and explain that our company has indeed rejected the proposal because the bidding project and the subject matter agreed in the contract are organic fertilizers instead of chemical fertilizers, and we are not obliged to provide chemical fertilizers. Our company is a professional manufacturer of organic fertilizers and seaweed fertilizers, not a chemical fertilizer manufacturer, and does not have the conditions to produce chemical fertilizers. According to China’s current export policy, chemical fertilizers cannot be exported,” the company added.
The company reminded the relevant parties in Sri Lanka to respect the spirit of the contract between both sides and learn from the experience of developed countries.