A Singaporean shipping firm has refused to comply with a $1 billion compensation order issued by Sri Lanka’s Supreme Court over the country’s most severe environmental disaster, saying the ruling threatens international maritime trade practices.
The company, X-Press Feeders, was the operator of the MV X-Press Pearl, which caught fire and sank off Colombo in June 2021. The vessel, carrying hazardous cargo including nitric acid, lead ingots, and tonnes of plastic pellets, burned for nearly two weeks. Before arriving in Sri Lanka, the ship had been denied entry by ports in Qatar and India after reporting chemical leaks.
The spill devastated marine ecosystems along an 80-kilometre stretch of Sri Lanka’s western coast, blanketing beaches with microplastics and forcing authorities to impose a months-long ban on fishing.
In July, the country’s top court directed the shipping company to pay an “initial” $1 billion within one year, starting with a $250 million instalment due this week. The judgment also left the door open for additional payments as determined by future assessments.
Rejecting the demand, X-Press Feeders’ chief executive, Shmuel Yoskovitz, argued that unlimited liability undermines global maritime conventions and would ultimately raise costs for consumers through higher insurance premiums.
“Any payment toward this judgment could set a dangerous precedent for the shipping industry. The foundation of maritime trade is built on limited liability,” Yoskovitz said. He stressed that while the company recognizes the gravity of the disaster, it has already spent $170 million on wreck removal, clean-up operations, and compensation for affected fishing communities.
Yoskovitz also voiced concern for the ship’s Russian captain, who has been prevented from leaving Sri Lanka since 2021, as well as for the company’s local partners facing legal pressure.
Sri Lankan officials, meanwhile, have said the government will consult the attorney general on how to proceed with enforcement. Environmental advocates have urged continued monitoring, warning that despite visible clean-up, long-term damage to marine life may linger.
The Supreme Court has scheduled a hearing later this week to review implementation of its order, including possible criminal proceedings against parties found to be in violation.
The dispute comes as X-Press Feeders continues to pursue legal protection abroad. In 2023, London’s Admiralty Court capped its liability at £19 million ($25 million), though Sri Lanka has challenged the decision. A related case at the Singapore International Commercial Court is currently paused, awaiting developments in the UK proceedings.
