China blacklists People's Bank

The Economic and Commercial Office of the Chinese Embassy in Sri Lanka has decided to blacklist the People's Bank of Sri Lanka.

The office said that People's Bank had recently failed to make the payment according to the Letter of Credit and the contracts between two parties, which had caused huge losses to Chinese companies in international trade.

Accordingly, the People's Bank has been included in the blacklist and Chinese companies have been instructed not to accept letters of credit issued by the People's Bank in trade with Sri Lanka.

People's Bank is one of the two major banks that issue letters of credit for imports. The inclusion of the bank in the blacklist will have a severe impact not only on imports from China but also on imports from other countries.

Suppliers in many countries, including India, are refusing to supply goods to Sri Lanka on letters of credit already, and this situation will continue to worsen in the future.

The news published by the Economic and Commercial Office of the Chinese Embassy