Post by : Rameen Ariff

SINGAPORE: Singapore-based shipping company X-Press Feeder has announced it will not pay the $1 billion court-ordered damages imposed by Sri Lanka for the country’s worst environmental pollution incident.

In a statement on September 23, CEO Shmuel Yoskovitz said the payment could have major implications for global shipping and set a dangerous precedent in maritime law.

The controversy stems from the MV X-Press Pearl, which caught fire and sank off Colombo Port in June 2021. The fire, believed to be caused by a nitric acid leak, burned for nearly two weeks. The ship was carrying 81 containers of hazardous materials, including acids, lead ingots, and hundreds of tonnes of plastic pellets.

The vessel had previously been denied permission by ports in Qatar and India to offload the leaking nitric acid before reaching Sri Lankan waters. After sinking, the ship released tonnes of microplastic granules, contaminating an 80 km stretch of Sri Lanka’s western coastline, leading to months-long fishing bans.

In July 2025, Sri Lanka’s Supreme Court ordered X-Press Feeder to pay an initial $1 billion in damages, with the first payment of $250 million due immediately. The court also left the door open for additional payments in the future.

“We are not paying because the judgment undermines the basic limitation of liability in maritime trade,” Yoskovitz said. He added that open-ended penalties could increase insurance costs, ultimately affecting global consumers.

The CEO reiterated that the company recognizes the disaster and has already spent $170 million on wreck removal, cleaning the seabed and beaches, and compensating affected fishermen.

“We are willing to pay more, but it must be under marine conventions and agreed as full and final payment. Living under this hanging guillotine is impossible,” Yoskovitz added.

In Sri Lanka, the Supreme Court has scheduled a hearing for Thursday to discuss the implementation of its ruling. Environmental experts warn that the long-term impact of microplastic pollution will persist despite the major clean-up efforts. Hemantha Withanage from the Centre for Environmental Justice said, “The pollution effects will be felt for a long time, even if the coastlines appear clean now.”

The enforcement of the Supreme Court’s order remains uncertain, especially concerning the ship’s Russian captain, Vitaly Tyutkalo, who has been banned from leaving Sri Lanka for more than four years.

Previously, X-Press Feeder’s liability was limited by London’s Admiralty Court to £19 million ($25 million), but Sri Lanka has challenged this decision. Additionally, a lawsuit has been filed against the ship’s owners in the Singapore International Commercial Court, which is pending until the London case concludes, with a pre-trial hearing expected in May 2026.

This case raises critical questions about environmental responsibility and liability in global shipping, with potential long-term consequences for maritime law and international trade.