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Chinese embassy blacklists People’s Bank; legal orders delay LC payment, says bank

The Economic and Commercial Counselor of the Embassy of the People’s Republic of China in Sri Lanka has blacklisted the People’s Bank for not effecting the payments in lieu of a Letter of Credit issued by the bank.

Releasing a statement, the bank, however, said that they are bound by an enjoining order issued by the Western Province Commercial High Courts of Sri Lanka with regard to the trade transaction in question, which precludes the bank from processing the payment.

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"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," the People’s Bank said.

"Once the legal barriers in effect are removed, the LC payment will be effected promptly as per the usual trade practices.

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