News
China rejects claims of bacteria in fertiliser, asks for intervention of world’s No 1 testing organisation
Lanka obtains second ruling against supplier, its local agent and state bank
In the wake of Commercial High Court of Colombo judge Priyantha Fernando halting the unloading of a shipload of organic fertiliser at the Colombo harbour and stopping payments to Chinese supplier, Qingdao Seawin Biotech Group Co. Ltd and its local agent Chelinaa Capital Corporation (Pvt) Limited, the supplier has challenged the Sri Lanka government to entrust Swiss SGS Group the world’s most authoritative and the top third-party testing organisation to re-sample the consignment rejected on grounds of being contaminated with ‘Erwinia.’
The Attorney General last Friday (22) sought the judicial intervention following growing protests against the Chinese products, spearheaded by the Opposition lawmakers. The Presidential Media Division (PMD) yesterday (26) said that Pradeep Hettiarachchi of Commercial High Court of Colombo (No2) prohibited payments to the Chinese company in response to an appeal by the Colombo Commercial Fertiliser. Yesterday’s court ruling has been issued in respect of the Chinese supplier, its local agent and the People’s Bank.
In a statement issued through the Chinese Embassy in Colombo yesterday (26), Qingdao Seawin Biotech Group asked the Sri Lankan government to accept re-sampling by the Swiss SGS group to see whether the samples had been contaminated by Erwinia. The Chinese said that both parties should unconditionally accept the test results of the third party. “If Erwinia contamination is confirmed, the supplier shall unconditionally transport the goods back to China. If there is no Erwinia contamination, the buyer shall unconditionally accept the goods and arrange payment.
The statement further said that the supplier reserved the right to investigate the legal responsibility of relevant parties for the
“untrue” or even “slanderous” reports and comments made by a section of the media.
The Chinese group emphasized that the shipping arrangement has been requested by Sri Lanka and it would be the responsibility of the buyer (Ministry of Agriculture) to obtain the Import Permit for 99,000 metric tons of organic fertilizer. The Chinese stressed that they were not responsible for securing the Import Permit. The company stated: “*The product samples have passed the test of Schutter group, a third-party international testing organization designated by the buyer and passed the export plant quarantine of China Customs before shipment.
* The detection method and conclusion of NPQS (National Plant Quarantine Service) in Sri Lanka do not comply with international animal and plant quarantine convention.
* Some officials from NPQS and the buyer, together with some local media are irresponsible when commenting on the issue with baseless derogatory words that seriously slander the image of Chinese enterprise.
* The Seller requests both parties to entrust the world’s most authoritative and the No.1 third-party testing organization (Swiss SGS group) to re-sampling as soon as possible to test whether the samples are contaminated by Erwinia. Both parties should unconditionally accept the test results and fulfill its responsibilities accordingly.”
The Chinese company has questioned the quality as well as the acceptability of NPQS’s findings in respect of the organic fertiliser consignment. The Chinese company asked how NPQS reached the conclusion that the samples contained Erwinia within three days when it would take more than six days to identify Erwinia according to International Plant Protection Convention). “The unscientific detection method and conclusion of NPQS in Sri Lanka obviously do not comply with international animal and plant quarantine convention,” the company stated.
The Chinese company stressed that the failure to obtain the import permit was caused by the buyer’s mistakes and negative inaction.
Declaring that the Chinese Customs, too, cleared the consignment following tests proved that product hadn’t been contaminated by Erwinia, the company accused Sri Lanka of resorting to unilateral measures in violation of contract agreement, international trade rules and the test result of their-own designated third-party Schutter group.
The Chinese supplier said that a section of the media questioned the quality of Chinese products, and even used “Toxic, garbage, pollution” and other derogatory words that seriously slander the image of Chinese enterprise and the Chinese government. “Such unilateral, untrue, and irresponsible remarks mislead the public and undermine the credibility of the media. The above “deliberately creating difficulties”, “unreasonable” and even “malicious” acts of NPQS, the buyer as well as some media give people reason to suspect that the buyer was creating various obstacles to obstruct the implementation of the contract, and even has bad commercial intentions.
Convenor of the Samagi Joint Trade Union Alliance affiliated with the Samagi Jana Balawegaya, Ananda Palitha, yesterday (16) said that the Ceylon Electricity Board was seeking to raise electricity tariffs by 13.56% percent although it had earned a profit of more than Rs 22,000 mn.
The CEB recently submitted its proposal to the Public Utilities Commission of Sri Lanka (PUCSL) for an electricity tariff revision for the second quarter of this year – the period effective from April 1 to June 30.
Palitha alleged that the PUCSL, in spite of knowing the massive profit earned by the CEB, at the expense of the hapless public, had chosen to allow the state enterprise to propose an additional burden.
The economic, technical and safety regulator of the electricity industry, and the designated regulator for petroleum and water services industries, should exercise its powers in terms of the PUCSL Act No. 35 of 2002 and the Sri Lanka Electricity Act No. 20 of 2009 to provide relief, the veteran trade unionist said.
Palitha emphasised that the PUCSL had the right to intervene on behalf of electricity consumers but, unfortunately, chose to facilitate the CEB’s despicable strategy. “The proposal to increase tariffs by 13.56% was meant to divert attention. The real issue at hand is the percentage of electricity tariff reduction,” Palitha said. The former UNPer found fault with the Opposition for failing to expose the CEB.
Taking into consideration the Rs 22,000 millionplus profit, the PUCSL could order the CEB to grant relief to consumers, Palitha said, adding that the CEB and PUCSL, together, deprived electricity consumers tariff reduction in the first quarter of this year, too.
In January this year, the CEB asked for a 11.59% tariff increase though it was enjoying Rs 22,000 mn profit at that time, the trade unionist said.
Palitha said that as the PUCSL received all data available to the CEB it was fully aware of the finances of the state enterprise.
In January, 2025, regardless of the NPP government floating the idea regarding as much as a 37% tariff increase, the PUCSL granted a 20% tariff reduction (25% of Rs 22,000 mn profit), Palitha said.
According to him, as a result of relief granted to the consumers, the profits had been reduced to Rs 16,000 mn but by June 2025 profits had increased to Rs 18,000 mn and there was a need to grant tariff reduction. But, the NPP, having always lashed out at the International Monetary Fund (IMF) in the run up to the presidential election, held in September 2024, started playing a different tune.
Responding to The Island queries, Palitha said that contrary to claims that the CEB proposed a 13.56% tariff increase to cover up losses caused by the importation of low-quality coal for the Norochcholai Lakvijaya coal-fired power plant, the current strategy seemed to have been adopted at the behest of the IMF.
Instead of granting tariff reduction for the third quarter in 2025, the PUCSL ordered an 18% increase, Palitha said. The trade unionist claimed that the Finance Ministry, at the behest of the IMF, directed both the CEB and the PUCSL to increase electricity tariffs by 20% in violation of the relevant Acts, he said.
Then in Oct, 2025, the CEB proposed a 6.8 % tariff increase at a time its profits were around Rs 22,000 mn. The CEB and PUCSL staged a drama over that proposal and finally, on the false pretext of the CEB’s failure to furnish its proposal on time, the revision was dropped, Palitha said. The SJB activist pointed out that the Opposition failed to highlight that consumers had been deprived of downward revision in spite of massive profits earned by the Board. “In fact, when Energy Minister Kumara Jayakody met trade unions, he very clearly declared that they were considering electricity power reduction, perhaps by 10%, 12% or 15%. But in the end nothing happened.”
Now the same drama is being enacted by the government, the CEB and the PUCSL, Palitha said.
By Shamindra Ferdinando
Members of the BASL yesterday (16) staged a protest march over the murder of a lawyer and his wife in Akuregoda, Thalangama, last week. The BASL staged a protest march from the Supreme Court Complex to the BASL Head Office.
Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva arrived in Colombo yesterday (16) for top level discussions with the government. She is scheduled to leave tomorrow (18) after meeting government authorities and key stakeholders, observing firsthand the impact of Cyclone Ditwah, and discussing ways in which the IMF could support recovery efforts and contribute to building a more resilient future for all Sri Lankans, sources said.
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