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By Kelum Bandara
In the latest episode of the fertilizer import issue, the Economic and Commercial Office of the Chinese Embassy in Sri Lanka blacklisted the People’s Bank for failing to make the payment according to the Letter of Credit and the contracts between two parties, Daily Mirror learns.
The decision has also been submitted to the Ministry of Commerce of China. All Chinese enterprises have been reminded to tighten risk control and avoid accepting LCs issued by the People’s Bank of Sri Lanka in international trade with Sri Lanka.
According to the terms of the contract for the shipment of the fertilizer stock, payment is to be made by means of Letter of Credit established through the People’s Bank of Sri Lanka upon submission of all the required documents: An informed source from the embassy said 75 per cent of the contract value was based on the quantity shipped as per the Bill of Lading and the quantity stated in the Commercial Invoice.
The rest is on a final acceptance certificate issued by the purchaser to the Bank, confirming delivery of the quantity of fertilizers in complete conformity with the specifications.