Singapore Shipping Firm Refuses To Pay $1 Billion Fine For Sri Lanka’s Worst Pollution Disaster

A Singapore-based shipping company, X-Press Feeders, has refused to pay US$1 billion in damages ordered by Sri Lanka’s Supreme Court for the country’s worst environmental pollution disaster, caused by the sinking of the MV X-Press Pearl near Colombo Port in June 2021.

The ship caught fire for nearly two weeks, reportedly due to a nitric acid leak, while carrying 81 containers of hazardous materials (including acids, lead ingots) and hundreds of tonnes of plastic pellets. Attempts to offload the leaking acid in Qatar and India were refused before it reached Sri Lankan waters.

The disaster polluted an 80-kilometre stretch of Sri Lanka’s western coast, with microplastics affecting beaches and marine life. Fishing was banned in the area for several months.

In July 2025, the Supreme Court of Sri Lanka ordered X-Press Feeders to pay an “initial” US$1 billion in damages within a year, with US$250 million due immediately and further payments required later.

Shmuel Yoskovitz, CEO of X-Press Feeders, told AFP that the company would not comply with the ruling, citing concerns about its impact on global maritime trade and the principle of limiting liability.

He said the company has already spent US$170 million on cleanup, wreck removal, and compensating fishermen and is willing to pay more under maritime conventions as a final settlement. He described the court ruling as a “hanging guillotine” that threatens normal operations.

The Sri Lankan government plans to seek advice from the attorney general on next steps. Government spokesman Nalinda Jayatissa said officials will follow legal guidance to enforce the judgement.

The United Nations in Colombo welcomed the Supreme Court’s ruling, describing it as an important move for justice and accountability. It noted that the “polluter pays” principle is recognised under international agreements, including the UN Convention on the Law of the Sea.

Experts warn that long-term environmental damage will persist despite major cleanup efforts immediately after the incident. Hemantha Withanage of the Centre for Environmental Justice said beaches may look clean, but marine ecosystem damage will continue for years.

The court also directed police and prosecutors to start criminal proceedings if the company or associated parties fail to comply. The ship’s Russian captain, Vitaly Tyutkalo, has been barred from leaving Sri Lanka for over four years.

X-Press Feeders had offered a fine to secure the captain’s release, but it was rejected. The company had also obtained a London Admiralty Court order in July 2023 limiting its liability to a maximum of £19 million (US$25 million), a decision currently being challenged by Sri Lanka.

Additionally, the Sri Lankan government has filed a case against X-Press Feeders in the Singapore International Commercial Court. The case is on hold until the London proceedings conclude, with a pre-trial hearing expected in May 2026.

Reference: FirstPost

Source: Maritime Shipping News