X-Press Pearl Disaster: Sri Lanka refuses to waive compensation
Sri Lanka’s Supreme Court scheduled a new hearing on 26 January 2026 after the Singapore-based company responsible for one of the worst environmental disasters in recent history failed to pay the first 0 million instalment of the compensation it ordered.
Colombo (AsiaNews) – The Sri Lankan Supreme Court has ordered the Attorney General to examine the possibility of taking legal action against X-Press Feeders for failing to pay compensation.
The Singapore-based shipping company operated the X-Press Pearl that caught fire in May 2021 fire, causing one of the worst environmental disasters at sea in recent years.
Sri Lanka’s highest court indicated that it had no intention of withdrawing the order, scheduling instead a new hearing for 26 January to review the situation.
Speaking to AFP recently, X-Press Feeders CEO Shmuel Yoskovitz announced his company’s intention not to pay the first instalment of US$ 250 million of the US$ 1 billion in damages awarded by the Supreme Court of Sri Lanka by the 23 September deadline.
For Yoskovitz, paying would have wide-ranging implications on global shipping and “set a dangerous precedent”.
In a hearing before the court in Colombo, lawyer Ravindranath Dabare, representing the plaintiffs, accused the shipping company of contempt of court, calling for appropriate action against the company's senior officials.
Lawyer Himali Kularatne, representing the fishing community, also argued that the company’s failure to comply with the compensation order constituted contempt of court.
President’s Counsel K. Kanag-Isvaran, representing Sea Consortium Lanka Pvt Ltd, X-Press Feeders’ local agent, informed the Court that his client had already paid Rs 300 million (US$ 1 million) as part of the compensation but was financially unable to make any further payments. He stressed that the company had acted in compliance with the Court’s order to the extent possible and had not committed contempt.
In response, Justice Achala Wengappuli, a member of the panel, stated that the Supreme Court had done everything within the law to obtain compensation for the damages caused by the accident. He also noted that it is now the government's responsibility to recover this money, adding that the arrests of the company's executives alone will not resolve the issue.
In light of the situation, the Court convened a new hearing for 26 January to assess progress made in implementing its decision.
Four petitions alleging violations of fundamental rights were filed with the Supreme Court by Cardinal Malcolm Ranjith, archbishop of Colombo, the Centre for Environmental Justice, and other parties, seeking compensation for damages suffered by the fishing community and the environment due to the shipwreck.
For its part, the United Nations Office in Sri Lanka also expressed concern over X Press Feeders’ refusal to comply with the Supreme Court order.
“We urge the shipping company to review the scale of damages to people, coasts and marine life, and to uphold justice for communities and the ecosystem,” it said in a statement posted on X.
.png)
07/11/2022 13:36
08/06/2021 16:40
