People’s Bank clarifies reports of blacklisting by China

With regard to reports on being blacklisted by China, the People’s Bank yesterday issued a clarification to set the record straight.

People’s Bank said it had come to notice that the Economic and Commercial Counsellor of Embassy of People’s Republic of China in Sri Lanka had blacklisted the People’s Bank for not effecting the payments in lieu of a Letter of Credit issued by the bank.

People’s Bank has already communicated to the relevant authorities at the Chinese Embassy that the bank is bound by an enjoining order issued by the Western Province Commercial High Court of Sri Lanka with regard to the trade transaction in question, which precludes the bank from processing the payment

“The temporary delay in processing the said payment pertaining to the LC is solely due to the bank’s obligation to be bound by the legal directions of the country as a responsible corporate citizen,” People’s Bank said, adding, “Once the legal barriers in effect are removed, the LC payment will be effected promptly as per the usual trade practices.”