A Singapore-headquartered shipping company has announced it will not pay the US$1 billion in damages ordered by Sri Lanka’s Supreme Court for the 2021 MV X-Press Pearl maritime disaster, calling the ruling “dangerous” for global shipping.
In an interview with AFP, X-Press Feeders CEO Shmuel Yoskovitz said the company could not accept the judgment’s “open-ended” nature, warning that it could set a precedent that undermines the international limitation of liability principle that underpins maritime trade.
The MV X-Press Pearl, a Singapore-registered vessel, sank off Colombo in June 2021 after a nitric acid leak caused a fire that burned for nearly two weeks. Its cargo included hazardous materials and tonnes of plastic pellets, which polluted an 80km stretch of Sri Lanka’s western coastline and devastated local fishing livelihoods.
Sri Lanka’s Supreme Court in July ordered X-Press Feeders to pay US$1 billion within a year, with an initial tranche of US$250 million due today (Sept. 23). The court also reserved the right to demand further payments.
Rejecting the ruling, Yoskovitz said:
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“We are not paying because the whole base of maritime trade is based on limitation of liability.”
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“Any payment towards the judgment could set a dangerous precedent.”
He added that the company had already spent US$170 million on wreck removal, seabed cleaning, and compensation for affected fishermen. While apologising for the disaster, he insisted any further payment must be final and consistent with international conventions.
The Supreme Court has scheduled a hearing on Sept. 25 to address enforcement of its order. Environmentalists argue the long-term effects of the disaster remain uncertain, despite initial clean-up efforts.
Meanwhile, legal battles continue overseas. X-Press Feeders secured a London Admiralty Court ruling in 2023 capping liability at £19 million, which Sri Lanka is contesting. A separate lawsuit in the Singapore International Commercial Court is on hold pending the UK case, with hearings set for 2026.
Concerns remain over the ship’s Russian captain, Vitaly Tyutkalo, who has been barred from leaving Sri Lanka for over four years. The company claims it offered to pay a fine for his release, but Sri Lankan authorities refused.
For now, Sri Lanka faces the prospect of losing US$1 billion in compensation for its worst-ever environmental disaster, with no clear path to enforcing the ruling internationally.
