Minister Johnston Fernando says the country will suffer a great loss, if compensation is not paid for the ship carrying fertiliser from China.
Speaking to media in Kandy today, Minister Fernando said it is not advisable to offend a powerful country like China.
The Minister claimed they must attempt to legally resolve issues according to the terms of the Letter of Credit rather than offend another country over USD 6 million.
He said countries must resolve such issues in an amicable manner.
Minister Fernando said China provided funds amounting to USD 1.5 billion when Sri Lanka was in need adding the Cabinet of Ministers agreed to pay the compensation.
On a separate note, the Minister claimed the country would not suffer any losses due to the Yugadanavi Power Plant agreement.
Minister Fernando said to his knowledge the deal will lead to a drop in the country’s electricity tariffs.
He claimed the price of one unit of electricity will reduce by between 30-50 percent.
Minister Fernando said Sri Lanka has the highest electricity rates in the South Asian region and questioned who would dislike the reduction of tariffs.
He said statements by MP Anura Kumara Dissanayake pertaining to the Yugadanavi deal are false.
Meanwhile, when questioned by media over reports of a Cabinet Paper being tabled in order to postpone the conduct of the forthcoming elections, the Minister said he was not aware of such a Cabinet Paper adding the matter will be discussed if the subject Ministry tables the Paper.
