September 23, Colombo (LNW): A Singapore-based shipping company has publicly refused to comply with a Sri Lankan Supreme Court ruling ordering it to pay US$1 billion in environmental damages, following one of the most catastrophic maritime pollution incidents in the island nation’s history.
In a statement made during a recent interview, Shmuel Yoskovitz, the Chief Executive Officer of X-Press Feeders, strongly opposed the court’s decision, arguing that adhering to the judgement could have far-reaching repercussions for the global shipping industry.
He warned that complying with the ruling could “set a dangerous precedent” for international maritime operators, potentially exposing them to disproportionate liability in future incidents.
The dispute stems from the sinking of the MV X-Press Pearl, a cargo vessel owned by X-Press Feeders, which caught fire and sank off the coast of Colombo in June 2021. The blaze, which lasted for nearly two weeks, was reportedly triggered by a leak of nitric acid among its hazardous cargo.
At the time, the vessel was transporting 81 containers carrying dangerous materials, including corrosive substances, lead ingots, and hundreds of tonnes of plastic pellets.
The ship’s operators had allegedly been denied entry by multiple ports, including in Qatar and India, where they had sought permission to offload the leaking container before arriving in Sri Lankan waters. The refusal left the vessel adrift with its hazardous contents until the situation deteriorated, culminating in a major fire and eventual sinking just off Sri Lanka’s western coastline.
The environmental consequences were swift and severe. Massive quantities of plastic micro-pellets—commonly known as nurdles—were released into the sea, blanketing an 80-kilometre stretch of coastline. Marine ecosystems suffered significant disruption, and the country’s fishing industry was brought to a halt, with fishing bans imposed across large swathes of the coast for several months.
The clean-up effort has since become one of the most costly and logistically complex environmental operations Sri Lanka has ever undertaken.
In July this year, Sri Lanka’s highest court ordered X-Press Feeders to pay an initial sum of US$1 billion in compensation, with the first instalment of US$250 million due by Tuesday. The ruling was intended as part of a broader effort to ensure corporate accountability and environmental justice.
However, the shipping firm has now made it clear that it does not intend to honour the court’s decision. The company has not yet detailed what legal steps, if any, it will take to challenge the ruling, but its stance sets the stage for a possible international legal and diplomatic confrontation.
