Singapore-based global maritime container shipping company X-Press Feeders on Tuesday (23 September) said it will not pay the damages of USD 1 billion which was ruled by the Supreme Court of Sri Lanka in July for the X-Press Pearl disaster in 2021. 

The ruling mandates an initial payment of USD 250 million on 23 September 2025, as part of an interim USD 1 billion order. 

The former operator of the container ship X-Press Pearl said it has carefully considered the July ruling together with its insurer. 

“After review, we are unable to make payment at this stage whilst we continue to seek engagements with the relevant Sri Lankan authorities,” the company said in a statement. 

On 20 May 2021, the Singapore-registered container ship, which was carrying 1,486 containers, encountered a fire that started in the cargo area while at anchor about nine nautical miles from the Port of Colombo, Sri Lanka and subsequently sank. 

According to media reports, billions of plastic nurdles washed up after the disaster along with dead turtles, dolphins and fishes.

“While we respect the judicial process, the ruling leaves open the possibility of additional and potentially unlimited compensation. Any payment towards the judgement could set a dangerous precedent for how maritime incidents will be resolved in the future,” said Shmuel Yoskovitz, Chief Executive Officer of X-Press Feeders. 

“It is vital that any compensation is substantiated, proportionate and consistent with international conventions.”

To date, the company said over USD 170 million has been paid towards wreck removal, environmental remediation and compensation claims. These efforts were carried out in cooperation with the Sri Lankan Government, including sourcing international expertise for clean-up operations.

Claims lodged by the Sri Lankan government that have been processed and approved by the International Tanker Owners Pollution Federation (ITOPF), have been settled.

“We are deeply disappointed to learn from local reports of Sri Lankan parliament proceedings that compensation payments have not yet reached many affected communities due to delays within Sri Lanka,” the company added.

“We share the frustrations of those impacted and remain open to providing additional direct support to community-based projects in Sri Lanka, for the benefit of the fishermen and marine environment.”

X-Press Feeders also shared its concerns for the welfare of both the vessel’s Master and its agents in Sri Lanka. 

“The Master has been prevented from returning home for more than four years due to a court-ordered travel ban, causing significant and prolonged distress to him and his family,” it said. 

“Over the last four years, our local agents have continued to face repeated investigations, arrests and court proceedings for an incident which they had no decision-making role in. We seek fair treatment of the vessel’s master and local agents.”

“We are open to direct dialogue with the relevant Sri Lankan authorities and have been actively seeking to engage with their representatives. We hope to achieve an outcome that is evidence-based, fair, proportionate and consistent with international practice.”

Related: X-Press Feeders calls for ‘rational decision-making’ following USD 1 billion Sri Lanka ruling
Related: ‘X-Press Pearl’ starts to sink off Sri Lanka’s coast, no more towing needed, says Navy
Related: Singapore-flagged “X-Press Pearl” hull remains fully intact, no bunker spill detected
Related: X-Press Feeders makes initial compensation of US$3.6 million to Sri Lankan government
Related: Sri Lanka to sue Singapore-registered owners of “MV X-Press Pearl” for marine pollution
Related: MPA: Operations underway to minimise environmental impact of ‘X-Press Pearl’
Related: Sri Lanka: Trico Maritime arrests “X-Press Kohima”; seeks USD 622,000 claim over “X-Press Pearl” incident

Photo credit: Sri Lanka Air Force – SLAF Media
Published: 22 September, 2025