Sri Lanka has now agreed to take delivery of organic fertilizer from China’s Qingdao Seawin Biotech Group Co Ltd, almost two months after Colombo had rejected its shipment, citing poor standards, forcing the firm to initiate arbitration proceedings. The breakthrough came after the Sri Lanka government recently paid $6.7 million in compensation to the Chinese firm in exchange for the latter’s assurances on withdrawing the arbitration plea and supplying a fresh stock in accordance with Sri Lankan standards, reported Daily Mirror. 

In November, the Sri Lankan government had rejected a consignment of organic fertilizer from the Chinese firm, citing quality issues—a claim the firm disputed and demanded third-party tests.

Sri Lanka later sought urgent supplies of nano-fertilizer from India, which delivered it promptly. However, these developments didn’t gone well with China, as its embassy in Colombo released frequent statements refuting Sri Lanka’s government claims. 

The row created strain in the ties between Beijing and Colombo, with the former taking a series of coercive steps, including blacklisting the state-owned People’s Bank of Sri Lanka.

On Wednesday, Minister of Plantation Ramesh Pathirana confirmed paying $ 6.7 million to the Chinese firm, adding that the bond worth $5 million deposited by the company wouldn’t be released until it delivers the agreed organic fertilizer in conformity to Sri Lankan standards. 

 (SAM)