Another interim order issued against Chinese company, blocking payment for shipping fertilizer


Ceylon Fertilizer Company (CFC) Limited obtained another interim order from the Colombo High Commercial Court against the Chinese company that shipped fertilizers containing harmful bacteria to Sri Lanka, its local agent and the People’s Bank.

In a press release issued today (October 26), the President’s Media Division (PMD) said that this court order prevents payment to the Chinese company on the letter of credit.

The CFC first obtained on Friday, October 22 an injunction against the Chinese company in question, preventing the People’s Bank from making any payment under an open letter of credit in favor of the Chinese company Qingdao Seawin Biotech Group Co., Ltd.

The previous court order was also issued preventing the Chinese company and its local agent from receiving any payment under the letter of credit.

Attorney General Sehan Soyza and Dr Charuka Ekanayake, Deputy Attorney General Nirmalan Wigneswaran and Additional Attorney General Susantha Balapatabendi PC appeared on behalf of the Ceylon Fertilizer Company.

The court was told that although the Chinese company was required to ship sterile organic fertilizers under the tender contract, it admitted in its shipping notice that the shipment may contain micro- organizations, the PMD added.

The National Plant Quarantine Services (NPQS) had tested the sample sent to them and confirmed the presence of organisms, including certain types of harmful bacteria.

The shipment is a partial shipment worth over one billion rupees that was purchased through a tender process launched by the Ministry of Agriculture, the PMD added.


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