China’s Ministry of Commerce has announced that People’s Banl has been blacklisted.
The Ministry’s website, lk.mofcom.gov.cn, published a ‘L/C Significant Risk Reminder Update,’ reminding the Chinese enterprises to strengthen risk control and avoid accepting L/C issued by People’s Bank in international trade with Sri Lanka.
“Recently, People’s Bank of Sri Lanka has witnessed vicious event of L/C default, causing huge losses to Chinese enterprises in international trade with Sri Lanka. This bank now has been blacklisted by the Economic and Commercial Office of Chinese Embassy in Sri Lanka,” the announcement said.
The announcement came following Qingdao Seawin Biotech company’s bold media statement issued on 26 October.
“After the seller received the buyer’s letter of credit, the buyer repeatedly violated the
principle of independence of letter of credit, and obstructed the bank from paying the
payment to the seller by arbitrarily changing the negotiation conditions of L/C, changing the settlement method from letter of credit to collection, applying to the court
for a stop payment order of letter of credit, etc,” the statement said.