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Blacklisting of People’s Bank: Move may result in several implications says Eran

a year ago

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Responding to the Chinese Embassy’s decision to blacklist the People’s Bank of Sri Lanka over what it terms as a vicious event of L/C default over the import of controversial Chinese organic fertiliser, causing huge losses to Chinese enterprises in international trade with Sri Lanka, Samagi Jana Balawegaya MP Eran Wickramaratne says that this is a very serious matter which may result in lots of other implications outside the immediate transaction that is being referred to.  He made such statements during a recent televised interview on the same. “The People’s Bank is one of the largest state banks. It is a very important bank for the country and the economy. This matter is very serious as lots of trade goes through the bank. When you are blacklisted, there can be lots of other implications outside the immediate transaction that is being referred to,” he said. He also stressed that trade is something that takes place between two commercial entities and therefore, issues should be resolved at a trading level. “These are trade transactions and they should be resolved at trading level rather than Governments, embassies or other agencies getting involved which raises the issue to a different level,” he said  Wickramaratne further detailed that a bank’s function when it comes to such transactions is to look at the conditions of the LC. “If the conditions of the LC are met, the bank will clear the goods and make the payment. The question here is whether the importer of the goods had listed all these specifications clearly,” he said. In terms of the Bank’s response to the decision to blacklist it, Wickramaratne said that it is unusual for a Sri Lankan court to issue an order to not make the payments. “The importer wants a way out and goes to court and the court gives an interim order to be followed. LCs work on international law but here the local court gave an order,” the MP said.

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