X-Press Feeders is pausing pay-outs for Sri Lanka’s worst environmental disaster on record. The former operator of the container ship X-Press Pearl, together with its insurer, said it has considered the July ruling of the Supreme Court of Sri Lanka, which mandates an initial payment of $250m today, as part of an interim $1bn order.
“While we respect the judicial process, the ruling leaves open the possibility of additional and potentially unlimited compensation. Any payment towards the judgment could set a dangerous precedent for how maritime incidents will be resolved in the future,” said Shmuel Yoskovitz, CEO of X-Press Feeders. “It is vital that any compensation is substantiated, proportionate and consistent with international conventions.”
The X-Press Pearl — a brand new 2,700 teu feeder vessel — sank off Colombo in June 2021 after a fire broke out in a container carrying leaking nitric acid. The incident caused Sri Lanka’s worst-ever marine pollution disaster, spilling hundreds of tonnes of plastic pellets onto the country’s beaches.
To date, X-Press Feeders said more than $170m has been paid towards wreck removal, environmental remediation and compensation claims.
The company reiterated its concern over both the vessel’s master and its agents in Sri Lanka. The master has been prevented from returning home for more than four years due to a court-ordered travel ban, while the company’s local agents have continued to face repeated investigations, arrests and court proceedings for an incident which they had no decision-making role in.
“We are open to direct dialogue with the relevant Sri Lankan authorities and have been actively seeking to engage with their representatives. We hope to achieve an outcome that is evidence-based, fair, proportionate and consistent with international practice,” X-Press Feeders stated.
