X-Press Feeders refuses to pay unprecedented damages for Sri Lanka’s worst environmental disaster.
A Singapore shipping company has refused to comply with Sri Lanka’s Supreme Court order to pay US$1 billion (S$1.3 billion) in damages for one of the worst marine pollution cases in the country’s history.
Company Rejects Court-Ordered Damages
On September 23, X-Press Feeders CEO Shmuel Yoskovitz announced that the firm will not pay the Sri Lankan Supreme Court’s order of US$1 billion in damages. The penalty was imposed following the 2021 sinking of the MV X-Press Pearl near Colombo Port, which released hazardous cargo and microplastics into the sea.
The Disaster and Its Aftermath
The Singapore-registered vessel caught fire in June 2021 after a nitric acid leak, burning for nearly two weeks before sinking. Its cargo included 81 containers of dangerous chemicals and hundreds of tonnes of plastic pellets. Sri Lankan beaches were inundated with microplastics, leading to fishing bans that devastated coastal communities.
Court Rulings and Legal Stalemate
Sri Lanka’s Supreme Court ordered the company to pay an initial US$250 million by September 23, 2025, as part of the US$1 billion fine. It also left the door open for further compensation depending on the long-term environmental damage. Yoskovitz rejected this “open-ended” liability, arguing it violated global maritime conventions that limit damages.
Company’s Position and Costs Already Incurred
X-Press Feeders has so far spent US$170 million on wreck removal, seabed cleanup, and fisherman compensation. Yoskovitz insisted the company is willing to pay more under international maritime law but cannot operate under what he described as a “hanging guillotine” of unlimited liability. He warned that accepting such a precedent could raise insurance costs across global shipping, ultimately affecting consumers.
Ongoing Hearings and Global Implications
Sri Lanka’s Supreme Court is scheduled to review the case again on September 25, 2025. Meanwhile, the London Admiralty Court capped the company’s liability at £19 million (S$32.9 million) in 2023, though Sri Lanka has contested this ruling. A separate case in the Singapore International Commercial Court remains on hold until the London proceedings conclude, with a pre-trial hearing set for May 2026.
Human and Environmental Dimensions
Beyond the legal battles, concerns remain over the long-term impact on Sri Lanka’s marine ecosystems. Hemantha Withanage of the Centre for Environmental Justice emphasized that while coastlines look clean today, hidden environmental effects may linger for decades. Meanwhile, the ship’s Russian captain, barred from leaving Sri Lanka since 2021, highlights the ongoing human toll of the disaster.
The X-Press Pearl case underscores the growing tension between national accountability and international maritime law. For Singapore and Indonesia, whose economies rely heavily on shipping, the outcome could redefine how environmental liabilities are handled across the region. The dispute also raises questions about balancing justice for affected communities with the global framework that sustains maritime trade.
Sources: CNA (2025) , Straits Times (2025)
Keywords: X-Press Feeders, Sri Lanka Court, Maritime Liability, Singapore Shipping, Environmental Damages
