The People’s Bank today (January 07) paid USD 6.9 million to the Chinese company that shipped a much-disputed consignment of organic fertilizer to Sri Lanka.

The payment came after the Colombo Commercial High Court dissolved the enjoining order preventing the payment on Letter of Credit to China-based Qingdao Seawin Biotech Group Co., Ltd.

On January 03, the enjoining order in question was dismissed as all parties had agreed for a settlement to ship a new stock of standardized fertilizer.

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