Oct 31, 2021

People's Bank will have to pay US$ 9 Mn. for Chinese fertilizer - GM

Chief Executive Officer and General Manager of the state owned People's Bank - Ranjith Kodithuwakku says that the bank will eventually have to pay US$ 9 million for the controversial Chinese fertilizer stock.

He said that the Letters of Credit had been opened before the test reports had come in, he said that the shortcomings of the state fertilizer company had resulted in this and now nothing can be done.

He pointed out that details had not been reported when the LCs were opened, and the quality standard report had come much later.

Noting that the full payment was not processed due to the enjoining order, Mr. Kodithuwakku said, it would have definitely proceeded and completed by now if not for the court case.

Speaking during a discussion with journalist Chamuditha Samarawickrema, he said that the bank had committed no wrongdoing in this instance but warned that the Chinese blacklisting could lead to a crisis.

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