Negotiations between the Government-appointed committee and representatives of the X-Press Pearl’s insurers are continuing as Sri Lanka pursues a negotiated settlement, while legal proceedings in Singapore remain on hold pending developments in related litigation before the London courts, The Sunday Morning learns.
A member of the Government-appointed negotiating committee, speaking on condition of anonymity, confirmed to The Sunday Morning that discussions with the ship’s insurers were ongoing in an effort to reach a settlement.
Meanwhile, a source at the Attorney General’s Department confirmed that no substantive progress had been made in the Singapore proceedings as authorities awaited the outcome of the limitation action currently before the London courts.
“The Singapore matter is in abeyance at the moment because we first have to get the limitation issue in London out of the way. We can revive the Singapore action only after that,” a senior official from the Attorney General’s Department said on condition of anonymity.
The official added that both the London limitation proceedings and the Singapore action remained active, although a negotiated settlement could make further litigation unnecessary.
“If the parties are able to reach a settlement and agree on compensation, then all the litigation would become unnecessary,” the official said.
According to the Attorney General’s Department, responsibility for the negotiations now rests with the Government-appointed committee, while the department’s involvement has become limited.
The ongoing negotiations follow repeated attempts by the X-Press Pearl’s liability insurer, the London P&I Club, to engage with the Sri Lankan Government after the Supreme Court’s landmark judgment on the environmental disaster.
In September last year, the club wrote to President Anura Kumara Dissanayake seeking the appointment of a high-level Government representative to facilitate discussions with the Government, the London P&I Club, X-Press Feeders, and other stakeholders. The insurer said it was seeking a dialogue without prejudice to the parties’ legal rights and proposed time-bound negotiations to resolve the dispute.
In a follow-up letter sent in November, the London P&I Club said it remained ready to meet with the Attorney General or any Government representative nominated by the President to discuss “a potential way forward” while preserving the parties’ legal rights and defences.
The insurer also sought support from the UK Government. In a letter to former Chancellor of the Exchequer Rachel Reeves, the London P&I Club argued that Sri Lanka’s interim $ 1 billion compensation award exceeded internationally recognised maritime liability limits and warned of wider implications for the global marine insurance industry. It called for diplomatic engagement with Sri Lanka to help facilitate a negotiated resolution that would balance environmental accountability with the commercial realities of international shipping.