Sri Lanka’s Supreme Court has ordered the shipping company responsible for the devastating X-Press Pearl disaster to pay a staggering $1 billion in compensation. The ruling addresses the extensive environmental and economic damage caused by the vessel’s fire and sinking off the country’s coast in 2021, which led to the largest recorded marine plastic spill globally.
Landmark Ruling on X-Press Pearl Disaster
The Supreme Court of Sri Lanka has mandated that the shipping giant responsible for the X-Press Pearl maritime disaster pay the Sri Lankan government USD 1 billion in compensation. This significant financial penalty is intended to cover the profound environmental and economic repercussions of the vessel’s fire and subsequent sinking off the nation’s western coast.
Key Takeaways
The Sri Lankan Supreme Court has ordered a $1 billion compensation payment from the shipping company involved in the X-Press Pearl disaster.
The ruling addresses the severe environmental and economic damage caused by the incident.
The court found that the failure to prevent the disaster violated fundamental human rights.
Compensation is to be paid within one year, with the first installment due by September 23, 2025.
The disaster resulted in the largest recorded marine plastic spill globally, with billions of plastic nurdles polluting coastlines.
Related: Maritime Accidents
Environmental and Economic Devastation
The X-Press Pearl disaster, which began with a nitric acid leak and culminated in the vessel’s sinking on June 2, 2021, caused unprecedented devastation to Sri Lanka’s marine environment. The judgment highlighted the significant impact on marine ecosystems, flora, fauna, and coral reefs. The spill included an estimated 70-75 billion plastic nurdles, which contaminated coastlines and led to a prolonged ban on fishing.
Accountability and Human Rights Violations
The Supreme Court bench, comprising Chief Justice Murdhu Fernando and Justices Yasantha Kodagoda, Shiran Gunaratne, Achala Wengappuli, and Priyantha Fernando, determined that the failure to prevent the disaster constituted a violation of fundamental human rights. Several parties were held accountable, including state officials and the vessel’s local agent. Prominent figures like Cardinal Malcolm Ranjith and members of the affected fishing communities filed petitions leading to this ruling.
Payment Schedule and Fund Allocation
The court has stipulated that the $1 billion compensation must be paid within one year from the ruling date. The first installment of $250 million is due by September 23, 2025. Subsequent payments are scheduled, with $500 million due within six months of the judgment and the final $250 million within a year. The compensation will be deposited into a newly established fund named the “MV X-Press Pearl Compensation and Environment Restoration and Protection Fund.”
Sources
Sri Lanka’s Supreme Court Orders Shipping Giant To Pay $1 Billion Over X-Press Pearl Disaster, Newsfirst..
Sri Lankan apex court orders $1bn compensation for X-Press Pearl disaster, Seatrade Maritime.
Supreme Court orders shipping company to pay US$1 bn in compensation for Xpress Pearl disaster – The Island, The Island.lk.
Sri Lanka orders Singapore shipowner to pay US$1 bn over marine disaster, 24 News HD.
SC orders $1 Bn. payout – Sri Lanka Mirror – Right to Know. Power to Change, Sri Lanka Mirror.
