September 29, Colombo (LNW): The Sri Lankan government is exploring its legal options after a Singapore-based shipping company refused to comply with a Supreme Court directive ordering a billion-dollar compensation package for the devastating X-Press Pearl maritime incident.
The 2021 disaster, considered one of the country’s worst environmental catastrophes, left a long-lasting impact on marine life, coastal communities, and the national economy.
In July this year, Sri Lanka’s highest court issued a landmark ruling compelling several companies involved with the ill-fated X-Press Pearl vessel to collectively pay US $1 billion in damages. The payment schedule was structured in three instalments: US $250 million by September 2025, US $500 million within six months of the ruling, and the remaining US $250 million by the one-year mark.
Those named in the ruling include EOS Shipping Pte Ltd, Killiney Shipping Pte Ltd (the bareboat charterer), Sea Consortium Pte Ltd (the time charterer), and their local representatives, Sea Consortium Lanka (Pvt) Ltd.
However, in a controversial statement reported by international media, X-Press Feeders CEO Shmuel Yoskovitz warned that honouring the court’s ruling could set what he described as a “dangerous precedent” for the global shipping industry. The company has yet to make any payments and appears reluctant to accept legal liability in the manner stipulated by the Sri Lankan court.
Despite this, the firm has maintained that it remains open to discussions, claiming in a recent statement that it is still seeking “constructive engagement” with Sri Lankan authorities.
The government, in response, has sought advice from the Attorney General to determine the appropriate course of action. Minister of Environment Dr Dammika Patabendi told Daily Mirror that the administration is currently awaiting legal counsel on how best to enforce the Supreme Court’s judgment in light of the company’s refusal to comply.
The X-Press Pearl disaster, which occurred off the coast of Colombo, saw the vessel catch fire and sink while carrying tonnes of toxic chemicals and plastic pellets, triggering widespread ecological damage. The incident not only disrupted the livelihoods of thousands of coastal residents but also significantly harmed Sri Lanka’s fishing industry and tourism sector. Cleanup and recovery efforts remain ongoing, with some environmental consequences expected to persist for years.
