Container ship owner X-Press Feeders has announced it will suspend the first compensation payments for Sri Lanka’s worst environmental disaster in history.
Following a July ruling by Sri Lanka’s Supreme Court, X-Press Feeders, the former operator of the container ship X-Press Pearl, and its insurers were ordered to pay an initial payment of $250 million on September 23 as part of a $1 billion interim compensation award.
Shmuel Yoskovitz, CEO of X-Press Feeders, said: “The company respects the judicial process, but the ruling leaves open the possibility of additional or even unlimited compensation. Any payment of the judgment could set a dangerous precedent for how future maritime accidents are resolved. Any compensation must be well-founded, proportionate, and in accordance with international conventions.”
In June 2021, the newly built 2,700 TEU container ship X-Press Pearl sank off the coast of Colombo after catching fire due to a leak from a container carrying nitric acid. The incident caused Sri Lanka’s worst marine pollution disaster in history, with hundreds of tons of plastic pellets washing up on the country’s beaches.
To date, X-Press Feeders has paid over $170 million for wreck removal, environmental remediation, and compensation claims.
The company reiterates its concerns regarding the captain and its Sri Lankan agent. The captain has been unable to return home for over four years due to a court-imposed travel ban, while the company’s local agent—despite having no decision-making authority over the matter—continues to face repeated investigations, arrests, and court proceedings.
The company reiterated its concerns about the captain, who has been unable to return home for over four years due to a court travel ban, and his Sri Lankan agent, who has no decision-making power but continues to face repeated investigations, arrests, and court proceedings.
X-Press Feeders stated: “We are willing to engage in direct dialogue with the relevant Sri Lankan authorities and actively seeks to connect with their representatives. The company looks forward to reaching a solution that is evidence-based, fair and reasonable, proportionate, and consistent with international practices.”