July 28, 2025
The Supreme Court of Sri Lanka has ordered the owners and related parties of the X-Press Pearl to pay $1 billion in compensation for environmental damage caused by the vessel’s sinking in 2021.
The X-Press Pearl, suffered a nitric acid leak from a container stored on deck during a voyage from Jebel Ali. After being denied entry to the ports of Hamad and Hazira, the vessel arrived in Colombo on 19 May 2021 with the leaking container still onboard. A fire broke out the following day, which ultimately destroyed the vessel, resulting in the sinking of the vessel off the coast of Sri Lanka on 2 June 2021.
According to court documents, the incident led to severe marine pollution, including the release of 46,960 bags of low- and high-density polyethylene from 20 containers. This resulted in an estimated 70 to 75 billion plastic nurdles spilling along Sri Lanka’s western coastline. As a result, the court determined that the ship’s Master, Operator, and local Agent intentionally withheld critical information from the Colombo Harbour Master about the vessel’s hazardous condition in an attempt to gain entry into port.
The court, as reported, has identified the X-Press Pearl Group as the sole polluter and ordered them to pay $1 billion in damages. The payment is to be made in three instalments: $250 million by 23 September 2025, another $500 million within six months of the judgment, and the final $250 million within one year.
Furthermore, it ruled that the vessel’s owner, charterers, and local agent Sea Consortium Lanka are all liable under the polluter pays principle. The parties admitted environmental damage but failed to provide credible counterclaims to the losses.
In addition, the court also found the state, including the former environment minister Nalaka Godahewa and MEPA, violated citizens’ rights by not acting promptly.
