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Fertiliser shipment controversy: Sri Lanka ready to face Chinese arbitration with ‘evidence’ 

09 Dec 2021

  • ‘We didn't do anything wrong. It isn’t our fault’: Agriculture Secretary 
BY Buddhika Samaraweera  In light of reports that China-based Qingdao Seawin Biotech Group Co. Ltd. is to initiate an international arbitration process against Sri Lanka over the problematic situation which arose regarding the controversial stock of organic fertiliser in the vessel “Hippo Spirit”, the Agriculture Ministry has said that they are ready to face any arbitration with the evidence they possess. When inquired about the reports of an arbitration process, Agriculture Ministry Secretary Prof. Udith K. Jayasinghe-Mudalige told The Morning yesterday (9) that the company has the right to go for an arbitration process and that the Agriculture Ministry and other relevant authorities are ready to face it accordingly.  “We didn’t do anything wrong and it is not our fault. Therefore, we will face the arbitration process with the evidence we have. Since there are also some judicial proceedings over the same matter, I am not in a position to reveal what our strategies and tactics are.”  Agriculture Minister Mahindananda Aluthgamage, on 8 December, told the Court of Appeal that the “Hippo Spirit” vessel which was in Sri Lankan seas carrying the controversial fertiliser consignment from the said company, will leave Sri Lanka’s maritime space.  The ship is to arrive in Singapore, and international media reported that the company has launched an international arbitration procedure to settle the dispute over the relevant fertiliser consignment. Claiming that the biggest issue was the ship being in Sri Lankan seas since certain parties have alleged that the Sri Lankan authorities would allow the consignment of fertiliser in the said ship to be unloaded, Prof. Jayasinghe-Mudalige said that this major issue has, however, now been resolved.  “The biggest issue was the ship and now it has gone back. We didn’t pay any money. The authorities will face the future proceedings,” he added. Aluthgamage told the Court of Appeal on Wednesday (8) that the ship would depart, when the writ petition filed by the Centre for Environmental Justice (CEJ) was taken up. Thereafter, it was reported that the said ship is on its way back after failing to reach any constructive agreement with Sri Lanka, despite relentless efforts to solve the dispute. Meanwhile, commenting on the “Hippo Spirit” vessel on an earlier occasion, Prof. Jayasinghe-Mudalige said that the ship should go back and that there would be no point in asking for compensation or submitting third party test reports. “We didn’t ask for this ship to come here. Therefore, there will be no point of giving third party test reports or asking for compensation for something we didn’t ask for. Furthermore, we cannot get into the ship and test the fertiliser samples in it,” he added. When contacted by The Morning at the time to query as to what action the Chinese fertiliser company would take in this situation, the local agent of the said company said that he is not aware of such.


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