News on blacklisting of People’s Bank by Embassy of People’s Republic of China in Sri Lanka

With regard to the news item being circulated in media on the captioned matter, People’s Bank wishes to clarify the following;

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

• People’s Bank has already communicated to the relevant authorities at the Chinese Embassy that the bank is 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 of the payment

• 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

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