Govt to Consult Attorney General After X-Press Pearl Owners Refuse $1 Billion Compensation Order

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The Sri Lankan government on Tuesday said it will seek the advice of the Attorney General after the owning company of the MV X-Press Pearl refused to comply with a Supreme Court order to pay USD 1 billion in compensation for the 2021 marine disaster off Colombo.

The Singapore-flagged container vessel caught fire in May 2021 while carrying 81 containers of hazardous chemicals, including 25 tonnes of nitric acid. The fire raged for nearly two weeks, causing catastrophic marine pollution. Billions of plastic nurdles and toxic substances spilled into Sri Lankan waters, killing marine life and devastating coastal communities. Dead turtles, dolphins, and whales washed up on beaches for weeks following the disaster.

On July 24, 2025, the Supreme Court directed the ship’s owning and operating companies to pay USD 1 billion in compensation, with an initial tranche of USD 250 million due by September 23.

However, Cabinet Spokesman Dr. Nalinda Jayatissa told reporters that the Attorney General would advise the government on the next steps after reports indicated the owners were unwilling to comply.

Company CEO Shmuel Yaskovitz, quoted in foreign media, said the ruling undermined the principle of limitation of liability in maritime law, warning that compliance could set a “dangerous precedent” for future maritime incidents.

The Supreme Court described the X-Press Pearl fire as the worst marine chemical catastrophe in Indian Ocean history, ruling it a violation of Sri Lankan fisherfolk’s fundamental right to lawful occupation.

In parallel, Sri Lanka has also filed criminal proceedings against the ship’s captain, chief engineer, and chief officerover the disaster.

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