Heavy losses on Chinese fertilizer deal due to Bureaucratic blunder

Heavy losses on Chinese fertilizer deal due to Bureaucratic blunder

China’s Qingdao Seawin Biotech Group has not delivered the promised fertilizer shipment even after a year.

The loss is around more than US$ 6.87mn or Rs 2.4bn as reported by Namini wijedasa for Sunday times.

Sri Lankan officials also failed to redeem two performance bonds of US$ 4.4mn provided by Qingdao Seawind that could have cushioned some of the losses arising from the controversial deal, the National Audit Office pointed out in a special report.

Performance bonds are securities against the non-fulfillment of contracts.  Qingdao’s bonds expired in March.

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