Chinese company refuses to budge

28 August 2022 11:43 pm - 36 - {{hitsCtrl.values.hits}}

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A Chinese fertilizer company involved in a dispute with Sri Lanka, has refused to budge and had demanded that Sri Lanka respect the spirit of the agreement reached between both parties.

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

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

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.

“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.

“It is reported that our company has rejected the proposal of providing chemical fertilizer instead of organic fertilizer put forward by the relevant parties of Sri Lanka. We hereby reiterate and explain that our company has indeed rejected the proposal because the bidding project and the subject matter agreed in the contract are organic fertilizers instead of chemical fertilizers, and we are not obliged to provide chemical fertilizers. Our company is a professional manufacturer of organic fertilizers and seaweed fertilizers, not a chemical fertilizers manufacturer, and does not have the conditions to produce chemical fertilizers. According to China's current export policy, chemical fertilizers cannot be exported,” the company added.

The company reminded the relevant parties in Sri Lanka to respect the spirit of the contract between both sides and learn from the experience of developed countries. (Easwaran Rutnam)

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Comments - 36

Thambi Vijay Monday, 29 August 2022 12:02 AM

What can the Chinese company do now?. They had already greased hands of enough lankan politicians when the order was placed. They cant get these back

Johan Monday, 29 August 2022 12:42 AM

They know that there is no demand for their organic fertiliser anywhere else. Hence they will try to dumb in Sri Lanka.. We pay big time for Gota's stupidity.. And then his private jet..

Manuth’s Weerakkody Monday, 29 August 2022 12:53 AM

It is shame on Chinese company to demand money from difficult time of Sri Lanka , isn’t it shame , are they true friends ?

vithura Monday, 29 August 2022 12:56 AM

When Rajapaksa brothers had sold Sri Lankans as bonded slaves to China, why would they relent?

Nihal S Monday, 29 August 2022 01:06 AM

“It is reported that our company has rejected the proposal of providing chemical fertilizer instead of organic fertilizer put forward by the relevant parties of Sri Lanka. We hereby reiterate and explain that our company has indeed rejected the proposal because the bidding project and the subject matter agreed in the contract are organic fertilizers instead of chemical fertilizers, and we are not obliged to provide chemical fertilizers". They are perfectly right. How can the Government change the scope after the Contract has been signed. This is against public and international procurement procedures. The responsible Government personnel for this mess should be investigated and charged.

Justice Monday, 29 August 2022 01:39 AM

Name the Sri Lankan official who signed the agreement without laying down the standard for the fertiliser. Was a commission. /. Bribe given to this official to sign the agreement? Who proposed the organic fertiliser to GR ? GR even in UN speech boasted that SL is the first country to change into organic manure. The world has seen the results in SL

Mendis Monday, 29 August 2022 02:02 AM

We have to settle this dispute with the Chinese company very fast as the Indian Vulture is circling Sri Lanka.

Indian Monday, 29 August 2022 04:35 PM

If it not for Indian vultures, you would have been served alive in the chinese platter. Have some gratitude for your neighbour who is the only country helped at the time of crisis.

State of affairs Monday, 29 August 2022 02:10 AM

1 small time chinese company is making SL govt grovel.

Mad Dog Kumaran Monday, 29 August 2022 02:31 AM

Now we know China's true colour. Where is Wimal Weerawansa, a friend of China.??

Vjinabay Monday, 29 August 2022 02:55 AM

And their government blames other countries..... Well well.......

N Andhasena Monday, 29 August 2022 03:01 AM

Why don't the SLPP geniuses behind this contract bend over for the chinese once more and put a noose around our necks with the already colossal debt? People should be aware that china has done nothing to "help" Sri Lanka" as they claim. it has always been debt and offloading all their cheap rubbish on us thanks to the rajapakshas. Norocchalai is a classic example. Even the vaccine dumped on us is way below standard and not recognised in most countries

Lion Monday, 29 August 2022 04:18 AM

Is this the way friends behave? China is not interested in the welfare of other countries. They will not allow us to reschedule their loans given to us and this will hamper the on going talks with IMF to obtain financial assistance to strengthen our economy.

Punchi Monday, 29 August 2022 04:32 AM

Hopefully our failed paradise has learned another lesson about dealings with our best buddy. Chinese products generally sub standard. Even China Chinese don’t trust baby milk powder manufactured in China and pay premium for baby milk powder from Australia, NZ etc.

Ben Monday, 29 August 2022 05:33 AM

It seems something wrong with SriLankan side, agents who participated on behalf of SriLanka, either illiterate,inexperienced or worked with hidden dishonest selfish agenda to grab unethical undercut, I remember this was happened when Cabral as governor of Central bank, his Hedging agreement, it was purposely not well written, so we lost legal battle wasting some more million dollars

Raj Gonsalkorale Monday, 29 August 2022 05:42 AM

With friends like these, why do you need enemies!

Mahila Monday, 29 August 2022 05:49 AM

The best response as patriotic Sri Lankans is to send the proper message to the Chinese that is best understood by them?? Sign the MCC agreement SOFA and what not??! Also special facilities to AUKUS at Ports/Airports??! Hand over the Trincomalee Port precincts to the Indians and the use of Quad Navy and Airforce with facilities for Base to monitor Indian ocean ??!!

Mahila Monday, 29 August 2022 05:49 AM

The best response as patriotic Sri Lankans is to send the proper message to the Chinese that is best understood by them?? Sign the MCC agreement SOFA and what not??! Also special facilities to AUKUS at Ports/Airports??! Hand over the Trincomalee Port precincts to the Indians and the use of Quad Navy and Airforce with facilities for Base to monitor Indian ocean ??!!

Patience Monday, 29 August 2022 08:52 AM

Too risky, when China holds all the cards. What if china in retaliation demands hambantota, port city and the highways, citing unpaid debt? To take on or provoke China like that, SL has to first clear all debt to them, become self-sufficient, and essentially an equal. Beggar nations like current SL cannot provoke.

We may be seen as foolhardy Monday, 29 August 2022 06:22 AM

Our government should be aware if China can presently (legally) allow export of chemical fertiliser before asking a company in that country to do so. Anyway it seems crazy that our government try to get organic fertiliser company to provide chemical fertiliser. They are so different. It is like asking tea plantation to make ceramic plates. This can only effect our attempts at negotiation with China on debt, as reports of our government's activity for illegal behaviour, ask China company to export a product banned from export in that country show foolhardiness.

Arnold Monday, 29 August 2022 06:44 AM

How come the person who approved it without proper procedures, is not punished. Some one has to go to jail for this.

Rukshan P Monday, 29 August 2022 07:01 AM

If you think this is bad, wait until we address the mountain of loans SL has defaulted on. Despite the fact that the Chinese banks lent money to a delinquent borrower for dubious projects, they will demand SL honour the repayments. This is what happens when you try to bed a dragon.

KD Monday, 29 August 2022 07:09 AM

There was never anything wrong with the Chinese organic fertilizer. It was just politicized by colombo anti rajapaksha activists and toxic fertilizer industry representatives. A contract once signed cannot be rescinded without repercussions. Good lesson for all Sri Lanka most of whom dont understand and respect contracts.

Lumbini Monday, 29 August 2022 07:54 AM

Take legal action against those involved in this affair.

Citizen k Monday, 29 August 2022 09:03 AM

Take them to international courts because there will be no action as palms are greased and any action will slip through.

Daya Monday, 29 August 2022 09:25 AM

This is a political mistake, to depend on foreign goods for everything and corruption by greedy politicians. These Chinese guys know this very well and do not budge for the sake of future business interests. Sri Lanka should diversify the requirements to other countries to avoid such blunders. Our procurement committees are full of corrupt guys. 1st we need an economic policy to enhance local production and tax foreign goods where our local produce could be sold in the market. We can save a considerable amount of foreign exchange and reduce unemployment.

Company seems purely for profit, so not state owned Monday, 29 August 2022 09:27 AM

If this company, Qingdao Seawin Biotech Group, is a private company and not owned by the government/State of China it is silly for government to try what it tried. If that company only does organic, then they would never do chemical fertilizer as it would harm the company to delve into the complete opposite of fertilizer fields. It is also disappointing that our government asked for chemical fertiliser when there is an export ban on it in China from that company. This makes our negotiating with any creditor with defaulted loans worse off. As those creditor will cite the outlandish nature of Sri Lankan government with negotiation. Asking for the impossible.

anand Monday, 29 August 2022 09:48 AM

SL lost a chance to negotiate this while allowing Wung-5 to dock in SL waters. Deserves the SL for breaching the trust of India which is the only country that sincerely helped SL at the most difficult times

China with love Monday, 29 August 2022 11:20 AM

Probably that they do not know the power of our President Ranil. He can get the Chinese company taken to the international court and take appropriate action action against this company.

Ceylonese Monday, 29 August 2022 11:57 AM

Why do we need to pay big money to lmport Chinese shit (feces) this so called organic fertiliser when it is freely available all over Sri Lanka for free. Whoever signed the contract didn't realize it could pollute the waterways and have a severe impact on the environment for years to come.

Appalling to asking for product not allowed for export Monday, 29 August 2022 12:07 PM

What are government top officials and administrator thinking asking for chemical fertiliser from a Chinese company when China does not allow export of such. If the China company only makes organic asking it to get chemical, maybe by way of it doing through another company is okay. However, organic food at least in the developed is premium product, done to higher standard, and organic fertiliser company in developed country does not want to taint their reputation by also dabbling in chemical fertiliser. Even chemical fertilizer company forced to start independent arms length company when getting into the more lucrative organic fertilizer field. That said organic product is for well developed countries, with consumer who want such. If we made organic food it would only have demand for export because it is otherwise too expensive for locals. Gota idea to ban chemical fertilizer was a sham to save dollars, which we still suffer for.

Human Rights Monday, 29 August 2022 12:34 PM

This is only a side show to hoodwink the masses from learning the reality. The humanity is bombarded with one sided fake news and propaganda in the media. UN voices concern over Assange extradition case. The prosecution of the WikiLeaks co-founder could hurt future whistleblowers, the UN’s top human rights official says. The extradition of WikiLeaks co-founder Julian Assange to the US could have a “chilling effect” on investigative journalism, UN High Commissioner for Human Rights Michelle Bachelet has said.

ramainlanka@gmail.com Monday, 29 August 2022 01:29 PM

It is obvious for Vultures to circle when carcass is seen.

Martin Milton Monday, 29 August 2022 05:31 PM

LESSONS TO BE LEARNT- STUPIDITY and INCOMPETENCE in dealing with Foreign affairs, Mismanagement of International affairs, and a whole lot more. As long as stupid, corrupt officials and similar ministers are in charge of such extremely important international affairs, Sri Lanka will continue to struggle to hold her own in Global dealings. The person/s who were involved in this deal remain free and at large to repeat the same and bring more disgrace to Sri Lanka. Why does present President remain silent on this? He needs to remove any and all responsible for this disastrous incident and enable the most severe punishment for all involved. MM

Sindu.Amare Monday, 29 August 2022 06:49 PM

If it seems as per the claim by the Chinese company our government does the nonsensical, then our government should still not back down. They must fight for us against all private company, wherever they are, using any negotiation. Some of it might look ridiculous, but better our government try any idea they have to get us a better deal.

Jef Monday, 29 August 2022 09:59 PM

Don't blame the Chinese...You guys rush to fast to make deals without any frame work done Chinese don't invest or sell products for nothing Chinese are brilliant forward thinkers they can easly take the world and turn up side down if they wish ...while our boys thinking how to fill own pockets you can play with india or any other nation but keep in mind Chinese Russians don't work that way...The real tigers

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Chinese company refuses to budge

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