China has lifted the ban on the People's Bank in Sri Lanka following its payment of almost US$6.9 million over a dispute involving imported organic fertiliser.
The Economic and Commerical Office of the Chinese embassy in Colombo lifted the ban implemented last October following the payment of the requested sum by the Chinese company Seawin Biotech Group.
The payment comes as a diplomatic spat between the two countries grew, after the Sri Lankan government refused to pay for a shipment of 20,000 tonnes of fertiliser.
In response, Seawin Biotech, launched a legal case against Sri Lanka for turning away scheduled exports of fertilisers worth US$49.7 million the Global Times reported, whilst the Chinese government blacklisted the People's Bank.
Further press reports suggested the company was exerting pressure on the Chinese government to obtain payment for the fertiliser as well as telling other Chinese companies “not to trust Sri Lanka”.
Following months of dispute, the amount was paid this week.
Read more at the Colombo Gazette
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