People’s Bank of Sri Lanka blacklisted by China

29 October 2021 11:40 am - 39 - {{hitsCtrl.values.hits}}

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The People's Bank of Sri Lanka has been blacklisted by the Economic and Commercial Office of the Chinese Embassy in Sri Lanka for failing to make the payment according to the Letter of Credit and the contacts between two parties.

The decision has also been submitted to the Ministry of Commerce of China. All Chinese enterprises are reminded to tighten risk control and avoid accepting L/C issued by People’s Bank of Sri Lanka in international trade with Sri Lanka.

In recent weeks, the Chinese fertilizer enterprise Qingdao Seawin Biotech Group Co., Ltd requested to get the payment of L/C by People’s Bank of Sri Lanka according to the contracts.

Ignoring the contract, the business rules and international trade customs, the People’s Bank of Sri Lanka defaulted the payment of L/C and caused huge losses to the Chinese enterprise, sources said.

According to the contracts terms, payment should be made by means of a Letter of Credit established through the People's Bank of Sri Lanka upon submission of all the required documents:

75% of the contract value is based on the quantity shipped as per the Bill of Lading and the quantity stated in the Commercial Invoice.

25% 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.

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Comments - 39

Imtiaz Muhsin Friday, 29 October 2021 11:56 AM

This reminds me about how the Portuguese got the Fort with the blessings of the King and then they gradually became aggressive. Maybe history is repeating itself!

Curious Friday, 29 October 2021 11:58 AM

The message is loud and clear; Find a way to use our contaminated fertilisers your fields or else!

FailedState Friday, 29 October 2021 11:59 AM

Sri Lanka has failed.. Miserably failed as a nation. This is the end result of 70 "independent' years. BRING BACK THE BRITS!

Mokan Friday, 29 October 2021 12:06 PM

Ha ha ha Chinese Diplomacy

Neelam Friday, 29 October 2021 12:41 PM

Ultimately what happened! The mango Friend became a enime. Fail land ..

Lumbini Friday, 29 October 2021 12:33 PM

Do not surrender to Chinese bullying. Never think that China is a friend of Sri Lanka. Their friendship is based on their objectives (profit).

Gehan Friday, 29 October 2021 12:39 PM

It appears that a lot of games are being played due to the lack of dollars!

roobarbie Friday, 29 October 2021 12:41 PM

Repeat of Portuguese? Yes. The same will happen when Americans get their foothold in Sri Lanka, via power and energy companies or MCC agreement. SLK government is crafty, its main operatives are crafty Mr 10 or 20 percent, and they will sell this country and its people to the foreigners. Both main parties in SLK are like that. Mr 10% is equivalent to Mr RW that lives in American pockets.

truth Friday, 29 October 2021 12:41 PM

China's true colours coming out. Hahaha 69 laks have fun

Dani Friday, 29 October 2021 12:42 PM

People's bank should open a foreign branch in Taiwan. Best way to slap china's face

Lanka putha Friday, 29 October 2021 12:47 PM

Let them change the name to Bank of China.

arun Friday, 29 October 2021 12:55 PM

Blacklisting or blackmailing...more like the second one

Priyantha77 Friday, 29 October 2021 01:01 PM

Sri Lanka is black listed by many companies for not paying open account shipments on time. This is due to absurd decision of CBSL of not floating the Forex and no forex in the market

truth Friday, 29 October 2021 01:07 PM

How about the Chinese Company?

Sunil Friday, 29 October 2021 01:09 PM

Who is the head of state of Sri Lanka?. China or Rajapakse.

BuffaloaCitizen Friday, 29 October 2021 01:14 PM

Well done Sri Lanka for continuously calling China your reliable friend. It is a pleasure to see Sinhalese getting screwed by Chinese.

Janp Friday, 29 October 2021 01:20 PM

WHO AUTHORIZED THIS BACTERIA INFECTED FERTILIZER MUST RESPONSIBLE? HOW MANY TIMES THIS KIND OF RACKETS HAS HAPPENED? CHINESE MADE THEIR PICTURE LOUD AND CLEARLY AND EXPECT MORE FROM IT

vithura Friday, 29 October 2021 01:28 PM

No person worth his salt would trust or do business with the Chinese.

Robert Friday, 29 October 2021 01:35 PM

We the Government black list China. Hahaha

Saranga w Friday, 29 October 2021 01:39 PM

I think SL is at fault here Should have negotiated instead of fighting with the second biggest economy of the world

mnsmart Friday, 29 October 2021 01:42 PM

kakuluwa natanne wathura rath wenakam withrai, ayyo den rath wenna patan aragena wage...

Ram Friday, 29 October 2021 01:43 PM

The issue is GOSL has no life without China. So GOSL happy to even purchase Chinese "Pooh" This time Courts were fast to suspend payment

Robert Friday, 29 October 2021 01:45 PM

Ok then send the Sinopharm payment through People's Bank..

Mueez Friday, 29 October 2021 01:47 PM

Cabral now you can make a fair deal with your Chinese masters to sell it to them

Seqi Friday, 29 October 2021 01:48 PM

Better to deal with a non government bank..... Both the Central Bank and People's Bank are corrupted.

Ros Weer Friday, 29 October 2021 01:51 PM

China has been dumping their cheap crappy products in Sri Lanka all through the Rajapaksha years. Now we are being dictated to by the good friend of the royal family

saliya Friday, 29 October 2021 02:07 PM

can we have a protest in front of the Chinese embassy, of course by none other than the protest specialist-WW Lemon Puff

daniel Friday, 29 October 2021 02:07 PM

where are all the so called patriots- no noise????

PD Friday, 29 October 2021 02:09 PM

This is how it should be. If you violate a contract there are consequences. But what do Sri Lankans know about honoring contracts?

Dee Friday, 29 October 2021 02:12 PM

Congratulations! Wish the GM or Chairman or whoever is given 'cabinet minister' status!

Chandrapala Friday, 29 October 2021 02:36 PM

How could China black list Internationally recognized bank. It is a fault of SL government not the bank.

Karu Friday, 29 October 2021 02:36 PM

Holy shit

joshua Friday, 29 October 2021 02:51 PM

Time for Cabraal and Rajapakshes to visit China and beg for mercy. Damn good

Gen Friday, 29 October 2021 03:02 PM

Let them black list. Once this government is kicked out we blacklist china. Kick them out of SL. They can forget the loans as we pay nothing ....

Jerome Friday, 29 October 2021 04:11 PM

Communists and their worshippers should be whipped out, from this planet.

Truth Seeker Friday, 29 October 2021 04:33 PM

"Sri Lanka has failed.. Miserably failed as a nation." How did we fail? Can you clarify? Is it for following our sovereign nations "Court Orders" or failing China's orders? China a supposed WORLD SUPER POWER should show compassion towards countries like us, who are going thru a difficult patch, not blacklist our banks. True friends support each other not bully the weak.

Dhatusena Rajakaruna Friday, 29 October 2021 05:41 PM

Peoples Bank, WELCOME TO THE HELL!! Once the largest now - take loan from China and cannot repay! Politicians are safe as they have foreign assets!!

Goat herder Friday, 29 October 2021 07:08 PM

It’s common knowledge that the debts to China is never to be fulfilled by the SL govt. This is exactly what the Chinese want. So eventually, SL will succumb to the chokehold that China is slowly exerting and hand over the nation to China. Who is at fault? Blam the common man who repeatedly votes these scoundrels into power.

Upulpb Friday, 29 October 2021 08:00 PM

One can immagine the result of none payment of loans in years to come

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People’s Bank of Sri Lanka blacklisted by China

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