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In rare legal action, Chinese fertiliser firm sues Sri Lanka for rejecting its consignment

In rare legal action, Chinese fertiliser firm sues Sri Lanka for rejecting its consignment

A ship loaded with 20,000 tonnes of fertiliser from Shandong-based producer Seawin Biotech meant for export to Sri Lanka is on its way back after failing to reach any constructive agreement with Sri Lanka, despite relentless efforts to solve the dispute, according to a report.

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A Chinese firm has launched an international arbitration against Sri Lanka for rejecting a large consignment of its fertiliser after failing to reach a "constructive agreement" to resolve the issue, official media here reported on Wednesday, in a rare legal action against Beijing's close ally.

A ship loaded with 20,000 tonnes of fertiliser from Shandong-based producer Seawin Biotech meant for export to Sri Lanka is on its way back after failing to reach any constructive agreement with Sri Lanka, despite relentless efforts to solve the dispute, state-run Global Times reported.

The ship is to arrive in Singapore, where the company has launched an international arbitration procedure to settle a growing dispute over a fertiliser export contract to Sri Lanka, the report said.

"A notice of arbitration has been issued to Sri Lanka about the international arbitration in Singapore, and the arbitration procedure has been initiated," a company official told the daily.