Colombo Additional Magistrate Oshadha Migara Maharachchi yesterday (14 Jan) issued a foreign travel ban on seven representatives of a local shipping company linked to the X-press Pearl vessel that caught fire off Sri Lanka’s coast.

The order was made during a Criminal Investigation Department (CID) inquiry presented to the court, concerning allegations that the ship’s email system had been deleted and the Harbour Master had been misled into granting entry clearance to the vessel despite claims of no risk.

Deputy Solicitor General Madhava Tennakoon, appearing for the Attorney General, told the court that the investigation is largely complete and discussions are ongoing regarding future legal action.

Accordingly, the Deputy Solicitor General requested the court to impose a foreign travel ban on the suspects.

Granting the request, the Magistrate prohibited the suspects from leaving the country and directed the CID to submit an update on the investigation to the court on April 23. (Newswire)

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The United Nations Office in Sri Lanka has raised concerns over the Singapore shipping company, X-Press Feeders’ refusal to honour Sri Lanka’s Supreme Court order of US$1B in compensation for the X-Press Pearl disaster.

In a statement on ‘X’, the UN Office in Sri Lanka said the refusal to honour Sri Lanka’s Supreme Court order is deeply concerning.

“We urge the shipping company to review the scale of damages to people, coasts and marine life, and to uphold justice for communities and the ecosystem,” it added.

The appeal comes after the X-Press Feeders chief executive, Shmuel Yoskovitz, said he believed paying would have wide-ranging implications on global shipping and “set a dangerous precedent”.

Rejecting the open-ended nature of the penalty, Yoskovitz told AFP, “We are not paying because the whole base of maritime trade is based on the limitation of liability. This judgment undermines this limitation of liability.”

“Any payment towards the judgment could set a dangerous precedent for how maritime incidents will be resolved in the future,” he said.

The chief executive again apologised for the incident, saying the company recognised the disaster and was trying to make amends.

The company operated the MV X-Press Pearl that sank off Colombo Port in June 2021 after a fire, believed to have been caused by a nitric acid leak, that raged for nearly two weeks.

Its cargo included 81 containers of hazardous goods, including acids and lead ingots, and hundreds of tonnes of plastic pellets. The ship was refused permission by ports in Qatar and India to offload the leaking nitric acid before it arrived in Sri Lankan waters.

Tons of microplastic granules from the ship inundated an 80km stretch of beach along Sri Lanka’s western coast. Fishing was prohibited for months.

Sri Lanka’s Supreme Court in July ordered the company to pay Colombo an “initial” US$1 billion in damages within a year, with the first tranche of US$250 million to be paid by Tuesday. (Newswire)

The refusal to honour Sri Lanka’s Supreme Court order of US$1B in compensation for the #XPressPearl disaster is deeply concerning.

We urge the shipping company to review the scale of damages to people, coasts & marine life and to uphold justice for communities & the eco-system. https://t.co/LFEBMpvsDL

— UN in Sri Lanka (@UNSriLanka) September 23, 2025

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A Singapore shipping company has announced it refuses to pay Sri Lankan court-ordered damages of US$1 billion for causing that country’s worst case of environmental pollution.

In an exclusive interview with AFP on Tuesday (Sep 23), X-Press Feeders chief executive Shmuel Yoskovitz said he believed paying would have wide-ranging implications on global shipping and “set a dangerous precedent”.

The company operated the MV X-Press Pearl that sank off Colombo Port in June 2021 after a fire, believed to have been caused by a nitric acid leak, that raged for nearly two weeks.

Its cargo included 81 containers of hazardous goods, including acids and lead ingots, and hundreds of tonnes of plastic pellets.

The ship was refused permission by ports in Qatar and India to offload the leaking nitric acid before it arrived in Sri Lankan waters.

Tonnes of microplastic granules from the ship inundated an 80km stretch of beach along Sri Lanka’s western coast. Fishing was prohibited for months.

Sri Lanka’s Supreme Court in July ordered the company to pay Colombo an “initial” US$1 billion in damages within a year, with the first tranche of US$250 million to be paid by Tuesday.

It also ordered the company “to make such other and further payments” in the future as the court may direct.

“HANGING GUILLOTINE” 

Yoskovitz rejected the open-ended nature of the penalty.

“We are not paying because the whole base of maritime trade is based on the limitation of liability. This judgment undermines this limitation of liability,” he told AFP.

“Any payment towards the judgment could set a dangerous precedent for how maritime incidents will be resolved in the future,” he said.

Yoskovitz said the absence of limitations could lead to higher insurance premiums, which would be ultimately passed on to consumers.

The chief executive again apologised for the incident, saying the company recognised the disaster and was trying to make amends.

He said X-Press Feeders had already spent US$170 million to remove the wreck, clean up the seabed and beaches, and compensate affected fishermen.

“We are not trying to hide … We are willing to pay more, but it has to be under certain marine conventions and an amount that is full and final and then it can be settled, and we can move on,” he said.

“But to live under this hanging guillotine – it is simply impossible to operate like this.”

LONG-TERM EFFECTS

In Colombo, Sri Lanka’s Supreme Court has scheduled a hearing on Thursday about the implementation of its decision.

One of the petitioners who sought compensation for the pollution has called for further research to determine the full extent of the damage to the island’s marine ecosystems.

“If you visit the coastlines today, there is nothing visible in terms of plastic pollution. A major clean-up took place soon after the X-Press Pearl incident, but the effects of the pollution will be felt for a long time,” said Hemantha Withanage from the Centre for Environmental Justice.

It remains unclear how Sri Lanka’s Supreme Court could enforce its decision.

However, in its 361-page decision in July, the court ordered the police and the state prosecutor to initiate criminal proceedings for non-compliance if the parties were present in Sri Lanka.

Yoskovitz expressed concern over the ship’s Russian captain, Vitaly Tyutkalo, who has been banned from leaving Sri Lanka for more than four years, as well as the company’s third-party agents there.

The firm had offered to pay a fine for the skipper’s release, but this was refused, according to Yoskovitz.

X-Press Feeders obtained an order from London’s Admiralty Court in July 2023, limiting its liability to a maximum of 19 million pounds (US$25 million), but Sri Lanka has challenged that.

The Sri Lankan government also filed a lawsuit against the ship’s owners in the Singapore International Commercial Court. But that has been stayed pending the result of the case in London, with a pre-trial hearing expected in May 2026. (CNA)

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X-Press Feeders, the operators of the X-Press Pearl, which sank off the shores of Sri Lanka in 2021, criticized the recent Sri Lankan Supreme Court ruling, stating it disregards international maritime law and presumes guilt of the Vessel Master before the conclusion of criminal proceedings.

“The Court has effectively pronounced the vessel’s Master and local Agents guilty of criminal charges before their trials have concluded, and in the case of the Agents, even before formal charges have been filed on some of the allegations,” the Singapore-registered company said in a statement. 

In July, Sri Lanka’s Supreme Court in a landmark ruling ordered the ship’s owners and operators to pay $1 billion in compensation, assigning full liability to them for the 2021 sinking, despite also identifying failures by multiple Sri Lankan authorities in their response to the incident.

X-Press Feeders initially issued a brief statement expressing disappointment and said it was reviewing the judgment.

In a longer statement released on Thursday, August 15, the company said it was “deeply concerned” by the ruling, which directs EOS Shipping Pte Ltd, Killiney Shipping Pte Ltd, Sea Consortium Pte Ltd, and local agents Sea Consortium Lanka (Pvt Ltd) to pay the compensation within a year.

“For more than 40 years, X-Press Feeders have been pivotal players in Sri Lankan trade. However, this judgment, which ignores accepted international maritime law, establishes an unprecedented level of risk that we, along with most shipping companies, will struggle to meet,” the statement said. “We fear the inevitable rise in import-export costs and the broader impact on the people of Sri Lanka,” the company added. 

X-Press Feeders criticized the judgment for not holding national authorities accountable, despite the court’s own findings of negligence. The company cited the court’s dismissal of actions by the Harbour Master and Director General of Merchant Shipping, who reportedly raised no alarms after inspecting the vessel, and noted the failure of the former director of MEPA to issue orders to take the ship offshore, despite repeated requests from the owners.

Sri Lanka’s Supreme Court described that inaction as “a clear departure from the collective decision-making process,” according to the statement.

X-Press Feeders said it remains committed to supporting Sri Lanka’s environmental recovery, noting that $150 million has already been paid toward wreck removal, beach cleanup, and compensation to fishermen. 

The company said its primary concern, however, is the human impact of the ruling, particularly on the vessel’s former master, who has been unable to leave Sri Lanka for more than four years. 

“When the actions of the Master were addressed in court, he was neither present in court nor personally represented legally, and he was given no opportunity to answer the charges levelled against him. The judgment effectively holds him and the Agents as human collateral to ensure the compliance of the owners and operators,” the company said. (Newswire)

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The government will launch fresh investigations into the X-Press Pearl ship disaster that was reported in Sri Lankan waters in May 2021, Cabinet Spokesman Minister Vijitha Herath said. 

Addressing the media today, Minister Herath said the incident had resulted in severe damage to Sri Lanka’s environment and ocean, while the fisheries community had also severely suffered. 

He said the government will launch a probe into the damages caused to Sri Lanka’s environment and ocean, as well as allegations of financial fraud related to the incident. 

Minister Herath said the investigations will take into account previous court cases and reports of previous Parliamentary Committees, one of which he too was appointed a member. 

The vessel, X-Press Pearl, which was transporting hazardous chemicals caught fire off the coast of Colombo in May 2021, resulting in a number of its cargo toppling into the sea.

Various cargo, including chemicals, and plastic pellets washed ashore along the Western Province coastal belt causing a massive environmental impact on the coastal line.

In May 2023, the Attorney General filed a claim in the High Court of Singapore over the X-Press Pearl incident involving six defendants.

In August 2023, the then government announced that the owners of the ship had agreed to compensate by paying a sum of Rs. 301 Million for the environmental damage caused by the fire. (Newswire)

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A Sri Lankan delegation, led by the Attorney General, has held fruitful talks with stakeholders of the X-Press Pearl ship that caught fire off the coast of Colombo in May 2021.

According to the President’s Media Division (PMD), the Sri Lankan delegation held discussions with the X-Press Pearl ship-owner interests’ lawyers and insurers in Singapore on July 18-19.

The PMD further stated that the discussion focused on addressing key aspects of the incident’s aftermath. 

Progress has also been made on assessing claims and wreck recovery, while discussions are to continue on the matter, it added. 

Sri Lanka is in the midst of seeking compensation for the massive environmental impact on the coastal line caused as a result of the ship disaster.

The vessel which was transporting hazardous chemicals caught fire off the coast of Colombo in May 2021, resulting in a number of its cargo toppling into the sea.

Various cargo, including chemicals, and plastic pellets washed ashore along the Western Province coastal belt causing a massive environmental impact on the coastal line.

In May 2023, the Attorney General (AG) filed a claim in the High Court of Singapore over the X-Press Pearl incident involving six defendants.

It was reported at the time that the AG’s Department is considering transferring the case to the Singapore International Commercial Court (SICC) based on its rules and litigation is being managed by a Singaporean law firm approved by the Cabinet to represent the Sri Lankan Government. (NewsWire)

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By Britney Martil

The X-Press Pearl disaster, which unfolded on May 20, 2021, near the coast of Sri Lanka, stands as a harrowing event with profound consequences that have reverberated across multiple fronts. This maritime catastrophe has sparked significant developments in recent times, drawing attention to the gravity of the incident and emphasizing the pressing need for immediate action.

Notably, the Attorney General’s Department of Sri Lanka has taken a pivotal step by opting to initiate legal proceedings in Singapore, a decision that underscores the magnitude of the disaster and showcases the government’s resolve to hold accountable those responsible.

By pursuing legal action in the jurisdiction where the ill-fated vessel was registered, Sri Lanka aims to seek redress and compensation for the extensive environmental devastation, economic losses, and detrimental health impacts inflicted by the calamity.

As the repercussions of the disaster continue to unfold, it becomes increasingly evident that comprehensive measures and just restitution are imperative to address the multidimensional implications and pave the way for recovery. This article examines the consequences of the X-Press Pearl incident for various sectors, shedding light on the urgency of addressing the multidimensional impacts and seeking appropriate compensation.

Environmental consequences

The X-Press Pearl disaster resulted in the release of hazardous materials and pollutants into the marine environment, causing widespread contamination. The deposition of plastic pellets, known as nurdles, has been a significant concern. These small plastic particles have littered Sri Lanka’s beaches, posing a severe threat to marine life.

Birds, turtles, and other marine animals often mistake nurdles for food, leading to internal injuries, starvation, even death. The scale of nurdle pollution has been staggering, with microplastics polluting the coastal areas, threatening the delicate balance of the marine ecosystem. 

Furthermore, the incident has disrupted and degraded vital coastal habitats. The release of hazardous chemicals and the subsequent contamination of water bodies pose a severe risk to mangrove forests, coral reefs, and seagrass beds.

These habitats provide essential breeding grounds, nurseries, and shelter for numerous marine species. The toxic impact on these habitats can have cascading effects on the entire food web, resulting in the decline of fish stocks, the loss of biodiversity, and the overall degradation of coastal ecosystems. The disaster has put several endangered species at risk.

Sri Lanka is home to various marine animals, including sea turtles, dolphins, and whales, many of which are already vulnerable due to other environmental pressures.  The release of pollutants and the contamination of their habitats have intensified the threats they face.

For instance, sea turtles nesting along Sri Lanka’s beaches have been directly affected by the influx of plastic pellets, potentially hindering their reproductive success and overall population growth.

Economic ramifications

The economic repercussions of the X-Press Pearl incident have been far-reaching. Sri Lanka’s fishing industry, a vital source of livelihood for thousands of families, has been severely impacted. With the contamination of coastal waters, fishing activities have been disrupted, causing financial distress for over 20,000 fishing families and approximately 16,000 fishermen.

The decline in fish stocks and the loss of markets due to concerns over contamination have dealt a blow to the industry and its associated businesses, affecting the broader economy. Additionally, Sri Lanka’s reputation as an eco-tourism destination has been undermined.

The contamination of pristine beaches and the negative media coverage have deterred potential tourists concerned about the environmental fallout. This erosion of environmental reputation has direct economic implications, with a decline in tourist arrivals and revenues. The loss of revenue from tourism exacerbates the challenges faced by local communities and hampers efforts to restore and rehabilitate the affected areas.

Health implications

The release of hazardous chemicals into the environment during the X-Press Pearl disaster has exposed nearby communities to toxic substances. Inhalation of these pollutants can have detrimental effects on respiratory health, leading to various respiratory ailments such as asthma, bronchitis, and other respiratory tract infections. The long-term consequences of exposure to these toxic substances are yet to be fully understood, underscoring the importance of ongoing monitoring and healthcare services for affected individuals. 

Moreover, the contamination of coastal waters due to the spillage of hazardous materials presents a significant public health concern. The presence of toxic substances in water sources raises the risk of waterborne illnesses and diseases.

Local communities relying on these water sources for drinking, fishing, and other daily activities face potential health hazards. It also has brought into light that the disaster has had a profound impact on the mental health and well-being of affected communities.

The destruction of livelihoods, the uncertainty surrounding the long-term consequences, and the loss of natural resources have caused significant stress, anxiety, and psychological distress. Individuals and families affected by the disaster may experience emotional trauma, financial hardships, and a sense of displacement.

Recent developments: Seeking compensation

In a significant development, the Attorney General’s Department of Sri Lanka recently announced its decision to file legal action in Singapore. The purpose of this legal move is to seek compensation for the environmental damages inflicted by the disaster.

The filing of a lawsuit in Singapore was an unexpected turn of events, catching many by surprise. Dr Ravindranath Dabare, Chairman of the Centre for Environmental Justice and an Attorney-at-Law, has noted that the authorities had not previously disclosed their intention to pursue legal action in Singapore, making it a recent and consequential development.

Thus, the decision to pursue legal action in Singapore holds immense significance for the ongoing aftermath of the X-Press Pearl disaster. The move underscores the seriousness with which the Sri Lankan government views the environmental damages caused by the incident.

By seeking compensation through legal means, Sri Lanka aims to hold accountable those responsible for the catastrophic consequences of the disaster. The potential outcomes of this legal pursuit are multifaceted. If successful, it could provide much needed financial resources to aid in the restoration of the affected ecosystem and support affected communities.

Moreover, it serves as a powerful statement, highlighting the importance of safeguarding the environment and deterring future incidents of a similar nature. In the wake of the X-Press Pearl disaster, it becomes evident that strengthening resilience and implementing preventive measures are imperative to safeguard Sri Lanka’s environment, public health, and economy.

This catastrophe serves as a wake-up call to reinforce regulations pertaining to the transportation of hazardous materials and enhance emergency response capabilities in maritime activities. Collaboration among authorities, industry stakeholders, and environmental organizations is essential in developing robust frameworks, promoting sustainable practices, and building a resilient future that minimizes the risks of similar incidents.

Britney Martil is a law student at the Kotelawala Defence University. With a passion for justice and equality, she is determined and dedicated to fighting against all forms of injustice.

Factum is an Asia Pacific-focused think tank on International Relations, Tech Cooperation, and Strategic Communications accessible via www.factum.lk.

The views expressed here are the author’s own and do not necessarily reflect the organization’s.

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The Indian High Commission in Sri Lanka has refuted media reports claiming that India has demanded compensation/damages from Sri Lanka for the assistance provided during the fire incidents onboard MT New Diamond and MV Xpress Pearl.

The High Commission stated that the reports pertaining to the ship disasters which occurred in September 2020 and May-June 2021 are completely false and incorrect. 

It may be recalled that the Government of India immediately deployed ships of the Indian Coast Guard (ICG) in response to specific requests from Sri Lanka Navy for providing expeditious assistance to fight the fire incidents onboard MT New Diamond and MV Xpress Pearl. 

Rescue operations conducted by these ships were instrumental in curtailing the hazardous effects of the two fire incidents and thereby limiting the damage to the maritime and marine environment of Sri Lanka, the statement said. 

The Indian High Commission further stated that in line with the ‘Polluter Pay Principle’ as per international norms, India has raised a claim for deployment, salvage activities and items/stores undertaken by these ships. 

The Government of Sri Lanka has been requested to join our claims with that of the Sri Lankan side in the respective forum. It is emphasized that the request has been for presenting these claims to the Insurer/Owner for settlement and reimbursing the compensation received through established channels, the High Commission said. 

The Indian High Commission in Colombo reiterated that India has not demanded any damages/compensation from the Government of Sri Lanka.

It added that the Government of India’s immediate deployment of ships are in line with the ‘Neighbourhood First’ policy and Security And Growth for All (S.A.G.A.R) doctrine. (NewsWire)

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The main opposition, Samagi Jana Balawegaya (SJB) has decided to initiate legal proceedings with regard to the X-Press Pearl ship disaster. 

Opposition and SJB Leader MP Sajith Premadasa said his party has taken steps to sue the management of the vessel over the massive environmental catastrophe that occurred in Sri Lankan waters. 

Addressing the Parliament yesterday (11), MP Premadasa said that letters of demand have already been sent out to the relevant parties.

Announcing the decision, MP Sajith Premadasa also tabled the relevant documents in Parliament. 

In May 2021, the X-Press Pearl vessel which was transporting hazardous chemicals caught fire off the coast of Colombo, resulting in a number of its cargo toppling into the sea.

Various cargo, including chemicals, and plastic pellets washed ashore along the Western Province coastal belt at the time causing a massive environmental impact on the coastal line.

The carcasses of a number of marine life, including turtles, dolphins, and whales were also found washed ashore as a result of the environmental pollution caused by the vessel. 

Sri Lankan authorities are currently in a legal tussle to obtain compensation for the damages caused as a result of the ship disaster. (NewsWire)

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The Parliament session was adjourned for 10 minutes today due to a tense situation during the debate over the MV X-Press Pearl ship disaster. 

Parliament was adjourned after a heated exchange of words took place between Justice Minister WIjeyadasa Rajapakshe and MP Thushara Indunil over the matter.

Temporarily adjourning Parliament, Speaker Mahinda Yapa Abeywardena also called for an urgent Party Leaders meeting. 

It is reported that the party leaders are expected to decide whether or not to take up for debate the MV X-Press Pearl ship disaster. (NewsWire)

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The Samagi Jana Balawegaya (SJB) has requested the Commission to Investigate Allegations of Bribery or Corruption to conduct a comprehensive investigation into allegations of bribery related to the compensation of the X-Press Pearl ship disaster in Sri Lankan waters. 

SJB MP Harshana Rajakaruna made the request on behalf of the SJB in a letter addressed to the Chairman of the Bribery Commission. 

In the letter, MP Rajakaruna points out that allegations are rife that some individuals or group had obtained a sum of US$ 250 million to prevent Sri Lanka from receiving the necessary compensation payment with regard to the ship disaster. 

Stating that this bribe has been obtained at a time when Sri Lanka is in the midst of legal proceedings to secure the compensation, the SJB MP requested the Bribery Commission to launch a probe into the matter and take legal action against those found guilty. (NewsWire) 

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Sri Lanka faces the possibility of losing a compensation claim of approximately US$ 10 billion if it fails to initiate legal action pertaining to the MV X-Press Pearl ship fire in the next 45 days, the Centre for Environmental Justice (CEJ) said.

According to Ceylon Today, the CEJ said in its latest report that as per Sri Lanka’s law, a compensation claim must be filed within two years of the incident, that is 29th May 2023.

As of now, there is a request for US$ 6.4 billion as compensation for the harm caused to the marine environment and various other effects caused to Sri Lanka. 

Based on legal advice, the existing legal precedents in Sri Lanka are sufficient to receive compensation.

However, at present, the Cabinet, the Ministry of Justice, together with the Attorney General’s Department, have taken the decision to conduct legal proceedings in Singapore, creating a sense of uncertainty, CEJ pointed out.

Stating that the government has reportedly been advised by an Australian to follow the procedure, the CEJ stated that the Singaporean authorities are already preparing for the necessary procedures and both Foreign Minister Ali Sabry and Justice Minister Wijeyadasa Rajapakshe are aware of the situation.

The CEJ report further stated that it has also been learnt that Sri Lanka has borrowed USD 4.5 million to fund this endeavour.

The CEJ added that, however, the failure to file a compensation claim before the required time period would be a failure on the part of the Attorney General’s Department and the Cabinet of Ministers. (NewsWire)

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