- Singapore case stalled over liability limitation
Nearly four years after the MV X-Press Pearl disaster, four legal cases remain pending across three countries, as Sri Lanka continues its pursuit of justice and full compensation for what has been described as the worst maritime environmental disaster in the nation’s history, The Sunday Morning learns.
According to a senior official at the Attorney General’s (AG) Department, who spoke to The Sunday Morning on condition of anonymity, there are currently two cases ongoing in Sri Lanka, one in the United Kingdom and another in Singapore.
The legal battle stems from the devastating incident on 20 May 2021, when the Singapore-flagged container vessel caught fire and sank off the coast of Colombo, releasing toxic chemicals and plastic pellets into the ocean.
One of the most significant developments lies in Singapore, where a lawsuit was filed in 2023 by the Sri Lankan Government against the ship’s insurer, the London Protection and Indemnity (P&I) Club. The suit seeks approximately $ 6.4 billion in damages for environmental destruction.
According to the senior official of the AG’s Department, proceedings have stalled following a move by the ship’s owning company to limit its liability – a claim that Sri Lankan lawyers are now actively challenging.
However, Sri Lanka is also pursuing legal remedies through a Fundamental Rights petition and a High Court case, while a separate case has been filed in the UK.
Sri Lanka’s estimated environmental damage claim for the disaster stands at $ 6.4 billion, but so far the country has received only $ 7.85 million from the London P&I Club in three instalments.
These payments fall far short of even the interim claim of $ 40 million initially sought by Sri Lanka shortly after the disaster.
The MV X-Press Pearl was carrying 1,486 containers, including 25 tonnes of hazardous nitric acid and an estimated 87 containers of plastic nurdles. After the vessel caught fire and burned for nearly two weeks, its sinking released pollutants into the surrounding marine environment, triggering extensive ecological damage.
In the aftermath, the Sri Lankan Government formed a panel of experts – including specialists from the Marine Environment Protection Authority (MEPA), the National Aquatic Resources Research and Development Agency (NARA), and several universities – to evaluate the disaster’s long-term environmental impact. Their assessments have informed the Government’s substantial compensation claim.