- X-Press Feeders refuses to pay $ 1 b compensation
- 17 insurance claims submitted
Following a Supreme Court directive, the Attorney General’s (AG) Department is set to brief the Cabinet on all possible legal action against Singapore-based X-Press Feeders, the company responsible for the 2021 MV X-Press Pearl disaster, after it refused to pay the $ 1 billion compensation ordered by the court.
A senior AG’s Department official confirmed to The Sunday Morning that the briefing would outline potential avenues Sri Lanka could pursue, taking into account an ongoing related case in Singapore.
The Supreme Court, during a hearing last week, stressed that it had taken all possible legal measures to secure compensation but noted that enforcement and collection fell under the responsibility of the Executive.
During the hearing, X-Press Feeders withdrew its legal representation, while the local agent, Sea Consortium Lanka Ltd., reported paying Rs. 300 million, citing limited financial capacity.
The petitioners, including representatives of the fishing community, highlighted that the initial $ 250 million instalment due on 23 September had not been paid, amounting to contempt of court, and urged action against the company’s directors.
The AG confirmed to the Supreme Court during the previous hearing that both the Compensation Commission and the Environmental Damage Assessment Commission were being established, alongside ongoing criminal investigations. A follow-up hearing is scheduled for 26 January 2026 to monitor compliance.
Sri Lanka has submitted 17 claims to the ship’s insurance company totalling $ 50.4 million, receiving only $ 14.6 million and Rs. 931.8 million in local currency, while $ 32.3 million in claims have been rejected due to insufficient documentation and reliance on estimated costs.
Following the ship’s refusal to pay the compensation, the United Nations Office in Sri Lanka expressed concern, urging the company to recognise the extensive damage caused to communities, coasts, and marine life, and to uphold justice for affected ecosystems.
The original petitions were filed by Cardinal Malcolm Ranjith, the Centre for Environmental Justice, and others, seeking redress for environmental and community damage caused by the disaster.
In July 2023, the Supreme Court held the ship’s operators, owners, and several State officials accountable for the disaster, which resulted in extensive environmental damage, including massive plastic pollution along an 80 km stretch of coastline.
The court found the ship’s master, owners, operator, and local agent jointly liable for concealing hazardous cargo and violating international maritime laws, constituting the worst marine spill in recorded history.
The court upheld the ‘Polluter Pays Principle,’ ordering the X-Press Pearl Group to pay $ 1 billion, and mandated the creation of a Compensation Commission and a Marine and Coastal Environment Restoration Committee. Criminal prosecutions and anti-corruption investigations were also ordered.
However, recently, X-Press Feeders Chief Executive Officer (CEO) Shmuel Yoskovitz has publicly refused to comply with the court’s order, citing concerns over unlimited liability setting a dangerous precedent in global shipping, potential increases in insurance premiums, and conflict with established maritime liability conventions.
He acknowledged the disaster, apologised, and noted that the company had already spent $ 170 million on cleanup, wreck removal, and compensation for affected fishermen, insisting that any further payments should adhere to international marine conventions.
The MV X-Press Pearl, carrying hazardous goods including acids, lead, and plastic pellets, sank off the Port of Colombo in June 2021 after a fire.
Attempts made by The Sunday Morning to contact Marine Environment Protection Authority (MEPA) General Manager A.J.M Gunasekara, Environment Minister Dammika Patabendi, Deputy Minister of Environment Anton Jayakody, and Environment Ministry Secretary K.R. Uduwawala were futile.