Colombo: Chinese company Qingdao Seawin Biotech has intensified its fight against Sri Lanka over disputed fertilizer stocks and has even proposed tough sanctions to be imposed at a time when the island country is experiencing an economic crisis.

The Government of Sri Lanka (GoSL) has already decided to pay USD 6.7 million to Qingdao Seawin Biotech Group Co Limited for the fertilizer which was rejected by Sri Lanka after local tests had identified harmful bacteria, according to Daily Mirror Sri Lanka.

Also, Qingdao Seawin Biotech Group Co Limited the Chinese company involved in a controversy with Sri Lanka over imported fertilizer has demanded USD 8 million from the Additional Director of the National Plan Quarantine Service (NPQS) of Sri Lanka for the loss and damage caused to the company.

Earlier, Sri Lankan government had suspended the importation of organic fertilizer from Qingdao Seawin Biotech Group Company Limited in September over quality issues, leading to a diplomatic spat between Sri Lanka and China.

Also, Sri Lanka National Plant Quarantine Service (NPQS) claimed that Erwinia was found in organic fertilizer.

Further, the People's Bank of Sri Lanka was also ordered by court not to pay the Chinese company for the substandard fertilizer.

Meanwhile, in October the Economic and Commercial Office of the Chinese Embassy in Colombo blacklisted the People's Bank for failing to make the payment according to the Letter of Credit (LOC) and contracts between the two parties.

Further, the issue is to be further discussed during a visit to Sri Lanka by Chinese Foreign Minister Wang Yi likely to take place in January next year.