According to foreign media reports, the Supreme Court of Sri Lanka has ordered the owners and related parties of the cargo ship “X-Press Pearl” to pay $1 billion in compensation for the environmental damage caused by the vessel’s sinking in 2021.
It is reported that the Singapore-registered “X-Press Pearl” experienced a nitric acid leak from a container stored on its deck during a voyage from Jebel Ali. The ship was denied berthing at both Hamad Port and Hazira Port, and the container remained onboard when it arrived in Colombo on May 19. On May 20, a fire broke out on the “X-Press Pearl,” ultimately leading to its sinking, which occurred on June 2 off the coast of Sri Lanka.
The judgment stated: “It caused unprecedented damage to Sri Lanka’s marine environment, resulting in loss, harm, and injury to the unparalleled treasure of the marine ecosystem, marine biota, and coral reefs.”
According to court documents, the marine pollution from the incident included 46,960 bags of low- and high-density polyethylene from 20 containers, with at least 70 to 75 billion plastic pellets leaking into Sri Lanka’s western coastal areas.
The judgment noted: “This marine environmental disaster constitutes the largest recorded marine plastic spill in history, with debris, particularly microplastics including tactile plastic particles known as ‘nurdles,’ spreading along the country’s western, southern, and northern coasts.”
The court found that the captain, owners, and local agents of the “X-Press Pearl” “deliberately concealed and failed to provide truthful, timely, comprehensive, and accurate information about the ship’s condition upon entering Sri Lankan territorial waters to the Colombo Port Master to gain entry into Colombo Port.”
The court ruled that the “X-Press Pearl Group,” as the sole polluter in the incident, must pay the $1 billion compensation. The first installment of $250 million is due by September 23, 2025, another $500 million within six months of the judgment, and the final $250 million within a year.
In response to the ruling, X-Press Feeders, the former operator of the “X-Press Pearl” under Sea Consortium, stated: “X-Press Feeders, the former operator of the container ship ‘X-Press Pearl,’ is deeply disappointed by the judgment of the Supreme Court of Sri Lanka regarding the ‘X-Press Pearl’ incident.”
X-Press Feeders said they are reviewing the 361-page ruling with legal advisors and insurers and coordinating with other stakeholders, including the International Group of P&I Clubs, to assess the best course of action.
The Supreme Court of Sri Lanka stated that the compensation should be deposited into a newly established fund under the Ministry of Finance Secretariat, named the “‘X-Press Pearl’ Compensation, Environmental Restoration, and Protection Fund.”
Compiled by Shipping Online
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