In a media release, the bank states that it is bound by an enjoining order issued by the Commercial High Courts of Sri Lanka with regard to the trade transaction in question, which precludes the bank from processing the relevant payment.
The temporary delay in processing the said payment pertaining to the LC is solely due to the bank’s obligation to be bound by the legal directions of the country, as a responsible corporate citizen, it adds.
The bank notes that once the legal barriers in effect are removed, the LC payment will be effected promptly as per the usual trade practices.
The People’s Bank of Sri Lanka was 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 contracts between two parties.
This transaction is regarding the fertilizer shipment from Qingdao Seawin Biotech Group Co., Ltd.
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