Sri Lanka is uncertain about the receipt of Rs. 6.4 billion as compensation for the environmental damage caused by the X-Press Peal ship disaster as legal complications deepen, The Sunday Morning learns.
The country’s main lawsuit filed in Singapore is currently on hold after ship insurers initiated a counter-case in the United Kingdom, seeking to limit their financial liability.
Attorney General Parinda Ranasinghe cautioned that a swift payout should not be anticipated, noting that the process would involve detailed scrutiny similar to an insurance claim.
“Nobody is going to just hand over Rs. 6.4 billion,” he said, emphasising that expecting the full amount without a legal challenge was unrealistic.
A major decision is expected this month in Sri Lanka regarding the massive chemical vessel disaster caused by the MV X-Press Pearl. The Supreme Court is set to announce its ruling on cases filed by environmental groups and others likely before the end of July.
Ravindranath Dabare, who is a Co-Founder of the Centre for Environmental Justice (CEJ), a group that filed one of the first lawsuits, said that all arguments in their case were finished. He expects a decision soon because the Chief Justice, who is leading the judges on this case, is retiring at the end of the month.
The CEJ believes the environmental damage from the X-Press Pearl disaster amounts to at least $ 6.4 billion. This amount is based on reports from experts up to November 2022.
Dabare said they wanted the court to allow for continued assessment because the damage was still ongoing.
The CEJ has also asked the President to commence an investigation into how the disaster and the compensation process have been handled.
Dabare also confirmed that the case in Singapore had stalled, noting that it had not progressed for some time. This goes against earlier hopes that suing in Singapore would be quicker and more effective.
Despite these challenges in international courts, the CEJ is hopeful about the Supreme Court’s upcoming decision in Sri Lanka. Dabare expressed his belief that even though Sri Lanka had not signed the international HNS Convention related to hazardous substances, it did not mean it would get less money.
He added that if the Supreme Court ordered compensation, it could be enforced internationally because the major companies involved were well known.
The MV X-Press Pearl caught fire and sank off Colombo in May 2021, spilling chemicals and billions of tiny plastic pellets, causing massive environmental damage. While some smaller payments have been made for cleanup and fishermen, the big battle for the huge environmental cost is still ongoing.