Sri Lankan Supreme Court Orders $1 Billion Compensation for X-Press Pearl Environmental Disaster
The Supreme Court of Sri Lanka has ordered the owners and affiliated parties of the X-Press Pearl container ship to pay $1 billion in compensation for the catastrophic environmental damage caused by the vessel’s sinking off the country’s western coast in 2021.
The Singapore-registered X-Press Pearl, operated by X-Press Feeders, was carrying a container of leaking nitric acid during its voyage from Jebel Ali.
Despite seeking assistance, the vessel was denied entry at Hamad and Hazira ports. The compromised container remained onboard when the ship arrived in Colombo on 19 May 2021.
A fire broke out on 20 May, escalating into a disaster that led to the complete destruction and eventual sinking of the ship on 2 June.
The court described the incident as an “unprecedented devastation” to Sri Lanka’s marine environment.
World’s Largest Recorded Marine Plastic Spill
Court documents reveal the environmental toll:
The spill included 46,960 bags of low- and high-density polyethylene from 20 containers.
An estimated 70 to 75 billion plastic nurdles were released, contaminating the country’s western, southern, and northern coastlines.
“This marine environmental disaster constitutes the largest recorded marine plastic spill in the world,” the court declared. It caused severe harm to Sri Lanka’s marine ecosystems, coral reefs, and marine biodiversity.
The court further determined that the ship’s master, operator, and local agent had intentionally suppressed critical information about the nitric acid leak from the Harbour Master in Colombo, failing to disclose the urgency of the situation when the ship entered Sri Lankan waters.
The court held the “X-Press Pearl Group”—comprising
Owner: EOS Shipping
Charterers: Killiney Shipping and Sea Consortium
Local Agent: Sea Consortium Lanka—
solely responsible for the incident.
They have been ordered to pay $1 billion in damages, with payments scheduled as follows:
$250 million due by 23 September 2025
$500 million within six months
Final $250 million within one year
Industry Reaction and Next Steps
X-Press Feeders expressed disappointment with the ruling, stating:
“We are extremely disappointed with the judgement. We are reviewing the substantial 361-page ruling with our legal advisers and insurers and liaising with other relevant stakeholders, including the International Group of Protection and Indemnity Clubs, to best assess our next course of action.”
The compensation will be directed into a new MV X-Press Pearl Compensation and Environment Restoration and Protection Fund, established and managed by the Sri Lankan government.
The fund is intended to support long-term environmental restoration and protection initiatives.
