The independent compensation commission established under the Supreme Court’s landmark ruling on the MV X-Press Pearl disaster has yet to commence its work, The Sunday Morning learns.

It is learnt that the commission, to be chaired by retired Supreme Court Justice Gamini Amarasekera, will be tasked with assessing the full scale of damages and disbursing payments to victims.

Justice Amarasekera confirmed that the body was still in the process of being constituted. 

“I believe they will be identifying other members of the commission, after which we will be able to commence our work,” he said, without commenting further.

The commission forms a central pillar of the Supreme Court’s 24 July ruling, which ordered the owners and operators of the X-Press Pearl, including X-Press Feeders, to pay $ 1 billion in compensation for the 2021 maritime disaster. 

The judgment, which is final and unappeasable in Sri Lanka, is regarded as one of the country’s most significant environmental rulings.

The X-Press Pearl, a Singapore-flagged container ship, caught fire and sank off Colombo in May 2021, releasing tonnes of plastic pellets, chemicals, and hazardous substances into the sea. The disaster devastated marine ecosystems and coastal livelihoods, which experts have described as Sri Lanka’s worst maritime catastrophe.

Under the court order, compensation must be deposited into a ‘Compensation and Environment Restoration’ fund. Payments are to be made in instalments, with the first tranche of $ 250 million due by 23 September. A separate Marine and Coastal Restoration Committee will manage ecological rehabilitation projects.

Centre for Environmental Justice Co-Founder Ravindranath Dabare, whose organisation filed the petition against X-Press Pearl, explained that the court had created the ‘X-Press Pearl Group,’ a legal entity covering not only the shipping company but also its local agents, operators such as X-Press Feeders, and their directors. 

“These parties are collectively or individually liable to make the payment, and liability even extends to their directors personally,” Dabare said.

The court has also requested detailed information on directors, including their passport numbers and addresses, enabling punitive measures in the event of non-compliance. “If the parties fail to comply, the court has the authority to take necessary legal action,” Dabare noted. Judicial oversight remains in place, with a review hearing scheduled for September.

Deputy Minister of Environment Anton Jayakody underscored that the matter lay fully within judicial control. “The Ministry of Environment is merely monitoring its progress,” he said, describing the case as sub judice. He added, however, that he had full confidence the court would execute its rulings and hold accountable parties responsible.

X-Press Feeders expressed disappointment with the ruling and signalled it may seek international recourse. The company said it was reviewing the judgment with legal advisers and insurers, claiming that the decision disregarded international maritime law.

It criticised the $ 1 billion award as a colossal interim figure and objected to the treatment of the vessel’s master and local agents as human collateral.

The company further pointed out that parallel legal proceedings initiated by Sri Lanka were still pending in Singapore, where enforcement of the ruling may face hurdles. Singaporean law, for example, generally does not enforce foreign ‘penal or public laws.’ X-Press Feeders also noted that it had already paid over $ 150 million for wreck removal, beach cleanup, and interim compensation to fishermen.

While the $ 1 billion award marks a milestone, Dabare emphasised that it was only a starting point. “The amount ordered so far is an initial payment. The commission will now work to assess the full extent of environmental and economic damages, which could be even higher,” he explained.

Attorney General (AG) Parinda Ranasinghe, commenting on the mechanisms to acquire the prescribed sums from X-Press Pearl, said: “Whether or not they have the capacity to pay lies in the hands of the ship owners. The Supreme Court has issued a deadline for them to make the payment by 23 September, amounting to $ 250 million, but the AG’s Department has no role to play in that process. We will have to wait and see after that.”

When asked if there were further discussions and negotiations taking place, Ranasinghe stated that he could not disclose details due to the need for strict confidentiality. 

“There is a lot of discussion among us, but I cannot disclose these details at this time. Nevertheless, the Government has appointed a Sectoral Oversight Committee to look into these matters, so perhaps we will see what information is revealed there,” he said.

Dabare further informed that the court had also called for investigation reports relating to the case. “The Court of Appeal has also directed authorities to file investigation reports every three months, reviewing bribery allegations raised in Parliament, media reports, and social media posts in connection with the case.”

Commenting on the public statements reported in the media challenging the judgment, Dabare said: “If any remarks amount to contempt of court, we will not hesitate to take action.”