X-Press Pearl Fallout: Shipping Giant Warns of Trade Risks After Court Order

COLOMBO (News 1st): X-Press Feeders, the former operator of the container vessel X-Press Pearl, has expressed deep concern over the recent decision by the Supreme Court of Sri Lanka, which orders an initial payment of USD 1 billion within one year in relation to the vessel’s 2021 casualty off the coast of Colombo.

In a statement, the company emphasized its foremost concern as the human cost the judgment may impose.

It noted that the Court’s ruling effectively pronounces the vessel’s Master and local Agents guilty of criminal charges before their trials have concluded, and in some cases, before formal charges have even been filed.

The judgment also directs the Attorney General to instruct police to further investigate and prosecute the Agents, despite their lack of operational decision-making authority over the vessel.

The Master, who has been under a travel ban in Sri Lanka for over four and a half years, remains unable to return to his family or resume his career, despite offers to deposit the maximum fine applicable to the charges he faces.

The company stated that he was not present in court, nor legally represented, and was not given an opportunity to respond to the charges.

X-Press Feeders expressed concern that the judgment effectively holds the Master and Agents as “human collateral” to ensure compliance from the vessel’s owners and operators.

The company also raised questions about the Court’s approach to the role of Sri Lankan authorities in the incident. It noted that the Harbour Master and Director General of Merchant Shipping were exonerated, despite their experts having boarded and inspected the vessel without raising alarms more than a week before the fire. It added that the judgment also overlooks the vessel’s repeated requests for assistance and the refusal by ports in Qatar, India, and Sri Lanka to offload the problematic container prior to the fire.

While the Court acknowledged shortcomings by the former Director of the Marine Environment Protection Authority (MEPA), particularly in not issuing clear orders to take the vessel offshore, it did not assign accountability or liability. The company cited this as a missed opportunity to address the broader response failures.

X-Press Feeders reiterated its regret over the environmental impact of the incident and reaffirmed its commitment to supporting Sri Lanka’s clean-up efforts. To date, the vessel’s owners have paid over USD 150 million for wreck removal, beach cleanup, and compensation to affected fishermen.

The company emphasized the importance of fair and scientifically grounded compensation that also considers the response and clean-up efforts by Sri Lankan authorities.

It warned that the judgment sets a precedent that could pose significant risks to international shipping operations and may lead to increased import-export costs, ultimately affecting the Sri Lankan economy.

X-Press Feeders urged all involved to consider the implications and ramifications of these interim findings and appeal for rational decision-making and judgments regarding liability and compensation that address the needs for environmental rehabilitation and compensation whilst ensuring the ongoing viability of trade for Sri Lankan people.

On the 24th of July 2025, the Supreme Court of Sri Lanka  ordered the shipping company responsible for the X-Press Pearl maritime disaster to pay USD 1 billion in compensation to the Sri Lankan government.

The payment is to cover the extensive environmental and economic damage caused by the vessel’s fire and sinking off the country’s western coast.

The court found that the failure to prevent the disaster constituted a violation of fundamental human rights, and held several parties accountable.

The ruling was delivered by a five-member Supreme Court bench comprising Chief Justice Murdhu fernando, Justices Yasantha Kodagoda, Shiran Gunaratne, Achala Wengappuli, and Priyantha Fernando.

The compensation order follows series of fundamental rights petitions filed by Cardinal Malcolm Ranjith and members of the fisheries community, who suffered severe losses due to the environmental fallout and disruption to livelihoods.

The court directed that the compensation be paid within one year from the date of the ruling, with the first installment due by September 23, 2025.

Named respondents in the case include the Minister of Environment, Minister of Fisheries, Minister of Ports, the Chairman of the Ports Authority, the Secretary of the Ministry of Environment, the local agent of the X-Press Pearl vessel (Sea Consortium Lanka Pvt Ltd), the Marine Pollution Prevention Authority, the Central Environmental Authority, and the Attorney General, among others.