Conflict with Sri Lanka: Chinese fertilizer company refuses to budge

Qingdao Seawin Biotech Group reminded the Sri Lankan authorities of a supplementary agreement reached between both parties in February 2022, reports Daily Mirror.

“According to the supplementary agreement reached between our company and the Sri Lankan side in February 2022, both sides shall continue with the organic fertilizer project,” Qingdao Seawin Biotech Group Director Song Hai Mei told the newspaper.

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, the newspaper reported.

“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 fulfill 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.