Inquiry into Organic Fertilizer Imports

Inquiry into Organic Fertilizer Imports

Inquiry into Organic Fertilizer Imports

Written by Teena Marian

18 Aug, 2022 | 11:45 am

COLOMBO (News 1st); The National Audit Office of Sri Lanka has launched a special investigation into the Organic Fertilizer import transactions that led to much controversy.

Auditor General W.P. Wickramaratne said the investigations will be based on the Organic Fertilizer Imports from China, and Liquid Organic Fertilizer Imports from India.

The Auditor General said that the investigation reports are expected to be submitted to Parliament as soon as possible.

The Gotabaya Rajapaksa Government reached out to China and imported organic fertilizer from Qingdao Seawin Biotech. Initial tests on samples carried out by Sri Lanka's National Plant Quarantine Service confirmed that Qingdao’s fertilizer contained a microorganism identified as ‘Erwinia’ which could cause crop failure. 

Qingdao Seawin Biotech responded by demanding an US$8 million compensation from Sri Lanka’s National Plant Quarantine Services, asserting that failure to pay the sum would result in legal action. 

The People’s Bank of Sri Lanka was blacklisted by the Economic and Commercial Office of the Chinese Embassy in Sri Lanka for failing to make the payment according to the Letter of Credit and the contracts between the two parties.

The People’s Bank of Sri Lanka paid a sum of USD 6.9 Million to Qingdao Seawin Biotech Group Co., Ltd, as per the Letter of Credit opened for the purchase of organic fertilizer, 48 hours after the Colombo Commercial High Court dissolved an order preventing the payment to a Chinese company for imported fertilizer.

There were serious concerns as to who allowed the Letters of Credit to be opened, even before the samples were tested for a pathogen.

In addition, concerns have been raised as to why Sri Lanka purchased Nano Nitrogen liquid fertilizer from India, above the market price in India.

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