Disputed Chinese fertiliser firm pushing for sanctions against SL

COLOMBO: A Chinese firm is pushing for economic sanctions to be imposed on Sri Lanka, including restrictions on tea imports for rejecting their consignment of organic fertiliser stocks, a move that comes when the island nation is in the midst of a severe economic crisis, a media report said on Thursday.

In September, the Sri Lankan government had rejected a 20,000-tonne consignment of organic fertiliser stocks from Shandong-based Qingdao Seawin Biotech Group Co. Ltd over “what Chinese sources call shady claims of quality issues.” Nevertheless, the Sri Lankan government decided to pay $6.7 million to the Chinese firm.

But the firm said the episode had ‘damaged their reputation’, a newspaper reported. Top officials at Seawin Biotech have approached the Shandong Provincial government to put pressure on the Chinese government to impose sanctions on Sri Lanka, the report said. The Chinese firm is also planning to escalate this issue on an international level, by lodging an official protest to several international institutions, and demanding restrictions on the import of Sri Lankan tea, the report said.

According to the Daily Mirror report, Seawin Biotech has urged other Chinese firms not to trust Sri Lankans, and even asked them to obtain payment in advance before undertaking transactions. The row over organic fertilisers has turned into a major diplomatic spat between the two close allies.

Considering Sri Lanka’s geo-strategic location, China has pumped in billions of dollars of investments in the island nation. Sri Lankan scientists, however, questioned the quality of Chinese fertiliser consignment, saying it could prove harmful to the crops.