The Supreme Court of Sri Lanka has ruled that owners and related parties of the X-Press Pearl must pay $1 billion in compensation for the catastrophic environmental damage caused by her sinking off the country’s coast in 2021.
The Singapore-registered container ship, operated by X-Press Feeders, experienced a nitric acid leak from a container stowed on deck during her voyage from Jebel Ali. She was denied berthing at the ports of Hamad and Hazira, and the leaking container remained onboard when it arrived in Colombo on 19 May 2021.
A fire broke out the following day, leading to the ship’s destruction and sinking on 2 June, triggering what the court described as an “unprecedented devastation to the marine environment of Sri Lanka”.
According to court documents, the pollution included the spill of 46 960 bags of low-density and high-density polyethylene from 20 containers and the release of an estimated 70-75 billion plastic nurdles along Sri Lanka’s western coastline.
In its judgement, the court found that the vessel’s sinking had resulted in “loss, damage, harm and injury to the marine environment – the unparalleled treasure trove of marine ecosystems, to marine life of flora and fauna and to the coral reefs”.
“This marine environmental disaster constitutes the largest recorded marine plastic spill in the world and carried its debris, especially the microplastics, including tangible items referred to as ‘nurdles’, along the western, southern and northern coastlines of the country,” the judgement said.
The court also found that the master, operator, and local agent “intentionally suppressed and withheld from the Harbour Master of the Colombo port, truthful, timely, comprehensive and accurate information regarding the situation that evolved over a period of time and prevailed at the time the afore-stated vessel entered the territorial waters of Sri Lanka".
The court ruled that the “X-Press Pearl Group,” comprising owner EOS Shipping, charterer Killiney Shipping, charterer Sea Consortium, and local agents Sea Consortium Lanka was solely responsible for the pollution, ordering them to pay $1bn in damages.
The first instalment of $250m is due by 23 September, followed by $500m within six months and the final $250m within one year.
X-Press Feeders said it was “extremely disappointed with the judgement”.
“We are reviewing the substantial 361-page ruling with our legal advisers and insurers and liaising with other relevant stakeholders, including the International Group of Protection and Indemnity Clubs, to best assess our next course of action."
The compensation will be deposited into a newly established MV X-Press Pearl Compensation and Environment Restoration and Protection Fund that will be managed by the government.
