X-Press Feeders, the former operator of the container ship X-Press Pearl, has announced it is suspending payments related to Sri Lanka’s worst environmental disaster. Together with its insurer, the company stated it had reviewed the July ruling of the Sri Lankan Supreme Court, which ordered an initial payment of $250 million as part of a provisional order totaling $1 billion.
“We respect the judicial process; however, this ruling leaves room for additional and potentially unlimited claims. Any payment under such an order risks creating a dangerous precedent for the settlement of future maritime incidents,” said Shmuel Yoskovitz, CEO of X-Press Feeders. He stressed that compensation must be “reasonable, proportionate, and aligned with international conventions.”
The X-Press Pearl, a newly built feeder ship with a capacity of 2,700 TEU, sank off Colombo in June 2021 after a fire in a container carrying nitric acid. The incident triggered the worst marine pollution in Sri Lanka’s history, with hundreds of tons of plastic pellets washing up on the country’s beaches.
According to X-Press Feeders, more than $170 million has already been spent on cleanup, environmental restoration, and compensation.
The company also reiterated concerns over the ongoing legal situation of the vessel’s captain and local agents in Sri Lanka. The captain has been unable to return home for more than four years due to a court-imposed travel ban, while local agents continue to face investigations, arrests, and lawsuits despite not being involved in the incident.
“We remain open to direct dialogue with Sri Lankan authorities and are actively seeking an outcome that is fact-based, fair, proportionate, and consistent with international practice,” the company said.
