Category: News

The Colombo Commercial High Court today (Nov. 19) extended the interim order issued against the Chinese company that shipped fertilizer containing harmful bacteria to Sri Lanka, its local agent and the People’s Bank.

Accordingly, the relevant court order, which prevents the payment to the Chinese firm on Letter of Credit, was extended until November 30.

During a previous proceeding, Additional Solicitor General Susantha Balapatabendi, who appeared on behalf of the CFC, told the court that China-based Qingdao Seawin Biotech Group Co., Ltd. had shipped a fertilizer consignment, which is a partial shipment worth more than a billion rupees that was procured through a tender process initiated by the Agriculture Ministry.

Although the said Chinese firm was required to ship sterile organic fertilizer under the tender contract, it had admitted in its shipping advice that the consignment may contain microorganisms, he had further told the court.

The National Plant Quarantine Services (NPQS), which tested the sample sent to them, had confirmed the presence of organisms, including certain types of harmful bacteria, the Additional Solicitor General had said, adding that, in this context, the Chinese firm in question has failed to complete the accepted terms of the tender.

As per the terms of the contracts, the payment for the controversial organic fertilizer shipment was slated to be made through a Letter of Credit established via the People’s Bank.

However, in September, the NPQS, which tested the fertilizer samples sent by the Qingdao Seawin Biotech Group Co., Ltd., revealed the detection of the microorganism called ‘Erwinia’. Several days later, Sri Lanka decided to suspend the importation of organic fertilizer from Seawin Biotech.

The Chinese firm retaliated, saying that the NPQS took only three days to draw a suspicious conclusion although it takes more than 6 days to identify Erwinia as per the ISPM27 rule in IPPC (International Plant Protection Convention).

The “unscientific detection method and conclusion of NPQ in Sri Lanka” are not in compliance with international animal and plant quarantine convention, Seawin Biotech claimed further and urged that Swiss SGS group, a top third-party testing organization, should re-test whether the samples contain Erwinia.

But Agriculture Minister Mahindananda Aluthgamage later insisted that the ship carrying the fertilizer consignment containing harmful bacteria will not be allowed into Sri Lanka. He also noted that the samples from this fertilizer shipment will not be re-tested, nor will any payment be made to the Chinese firm in question.

Later, the CFC secured two enjoining orders from the Colombo Commercial High Court against the Seawin Biotech, its local agent and the state-run People’s Bank, preventing the payment to the Chinese firm on Letter of Credit. The first court order against the Chinese firm in question was secured on October 23, blocking the People’s Bank from making any payment under a Letter of Credit opened in favour of the Chinese company.

On October 29, the Economic and Commercial Office of the Chinese Embassy in Colombo blacklisted the People’s Bank, citing its failure to make the payment in compliance with the Letter of Credit and the contracts. In a statement, the Chinese Embassy stressed the People’s Bank of Sri Lanka has recently witnessed vicious event of Letter of Credit default, causing huge losses to the Chinese enterprises in international trade with Sri Lanka.

However, the People’s Bank, in response to the Chinese Embassy’s move, said the payment for the organic fertilizer consignment shipped by Qingdao Seawin Biotech Group Co. Ltd. was halted due to an interim injunction issued by the court.

In the meantime, the Qingdao Seawin Biotech sent a letter of demand on Monday (November 08), seeking USD 8 million in damages from the Additional Director of the National Plant Quarantine Services (NPQS) of Sri Lanka. The Chinese firm sent the letter of demand to Dr. W.A.R.T. Wickramaarachchi, Additional Director of the National Plant Quarantine Service of the Department of Agriculture.

Rohan Parikh, Managing Director of Iconic Developments has urged the authorities to find solutions to resolve gaps in the real estate market and the Forex crisis. Speaking at a Webinar organised by the Ceylon Chamber of Commerce on Tuesday (16), he said there is a correlation between house prices, building materials and exchange rate depreciation, especially when one is considering a high import-dependent economy.

Referring to the Forex crises, people would ask him, ‘Why are you investing in Sri Lanka, when ROI is not guaranteed? Why don’t you invest in Dubai?’ Parikh’s response was, the issue is short term, hence, he anticipates medium to long term returns. “For someone considering global real estate investments, Sri Lanka is still not on the lines of Dubai and Singapore,” he said.

Furthermore, he said restrictions on foreigners holding land on free hold basis were a hindrance to the development of the ‘Villa’ concept in Sri Lanka. With regard to attracting foreigners to buy high end apartments, Parikh said one of the reasons for a foreigner to buy an apartment home in another country is to have a second home. “How do you attract a foreigner to buy an apartment home in the heart of Colombo? Though the Port City is coming up, and the concept of making Colombo into an entertainment and financial hub is much spoken about, still it is not something of the present.

So, we need to convince a foreigner to buy an apartment home in Colombo based on something of the future. “In the last three years, unfavourable developments like the Constitutional crises, Easter Sunday attacks and the current Forex crises have not helped developers to attract foreign buyers. “Cement and steel make up 40% of real-estate project costing. In Colombo, 20% of project cost is land, while 80% relates to construction.

In cities like Mumbai, it is the reverse, 80% for land and 20% for construction. The current import restrictions in Sri Lanka would further increase construction cost, which will make apartment costs to rise.” he said. When asked whether there is an oversupply of real estate in Central Business District of Colombo, he said. “It is a wrong supply and not over supply. Too many players got into supplying apartments to the value of Rs 100 million. There is a market for semi-luxury apartment units at the range of Rs 60 to 80 million,“he said.

The budget for the year 2022 of the Valvettithurai Urban Council in Jaffna has been defeated by one vote.

Accordingly, eight members voted in favour while nine voted against.

Four Independent party members, two EPDP members and two SLFP members voted in favour of the budget while seven TNA members, two Tamil National People’s Front members voted against it.

Therefore, the budget requires to be amended and presented in 14 days.

Members of British and Scottish parliament, from across the political spectrum, have called on Police Scotland to end its police training program with Sri Lanka and for the British High Commission to heed the “voices of human rights campaigners and those who have either fled from or are still suffering state-driven violence in Sri Lanka”.

In a joint letter addressed to Sarah Hulton, the parliamentarians note that Police Scotland’s training contract with Sri Lanka is due for renewal at the end of March 2022, subject to approval from the British High Commission. The contract has been temporarily suspended pending a human rights assessment. The letter highlights growing concern over the human rights abuses committed by Sri Lankan police officers citing the UN High Commissioner for Human Rights report in January which detailed “the persistence of longstanding and endemic patterns of custodial deaths, use of torture and other ill-treatment, and extrajudicial killings by law enforcement officials with impunity, [as well as] credible allegations through well-known human rights organisations of abductions, torture and sexual violence by Sri Lankan security forces”.

The parliamentarians further warned against Police Scotland’s training being used as “political cover, unwarranted legitimacy, and a smokescreen for human rights abuses which are occurring in the country”.

The letter further chided the Scottish Government and Police Scotland for a lack of transparency noting that since their engagement with Sri Lankan police in 2006, “there has been little clarity about the content of the training, the units and individuals who are being trained, and its effectiveness in improving human rights”.

They further note that whilst the Scottish Government and Police Scotland had claimed that “training with Sri Lankan Police had been suspended due to the COVID-19 pandemic”, they have not clarified that a review of the OSJA had been underway since May 2021.

“They have failed to engage with campaigners or the victims of past violations and have not demonstrated any willingness to ensure that their concerns about human rights are heard as part of the OSJA review process” the letter adds.

The parliamentarians stress the need for clarity on whether submissions can be made to the review and the time frame of the review process.

“Victims of police atrocities, human rights campaigners, and elected MSPs and MPs should be able to make their opposition to continued engagement with Sri Lankan Police on justice and security issues clear to the British High Commission” the letter maintains.

The letter concludes by stating:

“Despite years of training and engagement by Police Scotland the human rights record of the Sri Lanka Police has not improved. On the contrary, under the current government of Gotabaya Rajapaksa, it is deteriorating. There has been no accountability for past abuses, and the Sri Lankan government has repeatedly made its opposition to accountability very clear. Given both Scotland and the UK’s commitments to being champions of international human rights, we are concerned that Police Scotland’s continued links to the Sri Lanka Police are inherently incompatible with these commitments”.

Read the full letter below.

The MPs and MSP who have signed the letter are listed below.

This letter was coordinated by a dedicated team of lawyers who have also taken on the cases of Tamil victims who are seeking legal recourse and reparations from Police Scotland. These lawyers are currently in briefings with these victims.

Many Economic Centres across the island are experiencing a drastic drop in fruit and vegetable produce, and available crops are being sold at higher prices. However, according to our correspondents, the Manning Market in Colombo saw a reduction in prices when compared to the past few days.

Stocks of fruit were limited due to the shortage of fertiliser, but there was an excess of bananas and the prices are extremely low, said the Chairman of the Manning United Progressive Union Priyantha Wijesundara.

In the hill country, the Menikkumbura Economic Centre usually with a daily turnout of a Million kilos of Vegetables is experiencing a drop to 100,000 Kg per day.

A complete stoppage of goods might be expected in the next 2-3 weeks because vegetables are unconsumable due to inclement weather, fertiliser problem on the other hand, as well as the shortage of diesel, will stop transportation, said the Chairman of the Katugastota Menikkumbura Economic Centre D.N.A Silva.

” We will have to close down our shops, go home and send our employees home too. The burden of this will fall onto the general public”, said Silva.

Meanwhile, the Thabutthegama Economic Centre reported a 60% drop in vegetable stock and a lower turnout of farmers and buyers when compared to normal days. The Dambulla Dedicated Economic Centre too saw a massive drop in supplies reaching the premises.