The government of Sri Lanka was reported recently as stating it would reopen investigations into the case with the Urban Development and Housing State Minister Arundika Fernando reported as saying the incident warrants $6.5 billion in compensation. There have also been allegations of corruption by the previous government into the handling of the incident.

Responding to the reports Singapore-based X-Press Feeders, owners of the X-Press Pearl, said that it hoped, “bureaucratic and legal hurdles that have caused severe delays can now be overcome”.

The government claims to have only received $12.5 million from insurers London P&I Club while the Department of Fisheries and Aquatic Resources has also accepted about 3 billion rupees ($10.5 million) in local currency, an issue of contention, for clean-up costs.

“To date, the owner has paid over USD 150 million dollars for these response and clean-up operations. This includes not only the removal of the wreck and removal of debris on the seabed but also the claims made by the Sri Lankan Government,” X-Press Feeders said in a statement.

It said the claims had been assessed by an independent expert body acting as advisors to both the government and the owners. The Singapore-based owner said all payments had been made to the Government of Sri Lanka’s Central Treasury Account and were in US dollars or local currency depending on which currency the claims had been incurred.

In relation to compensation payments to fishermen X-Press Feeders said it had paid $9.5 million and further payments had been suspended pending legal action by representatives of the fishing community against the Sri Lankan government.

“There is ongoing legal action over this incident, and the owners have responded to these proceedings in the courts that the Sri Lankan government and other parties launched them,” the company said.

As Seatrade Maritime News reported in August in relation to legal proceedings the vessel’s former Master Vitaly Tyutkalo, has remained trapped in Sri Lanka for three and a half years under court a travel ban.

“If the new Sri Lankan government is going to review these proceedings, then we appeal to them to also consider the ongoing legal action against the former captain of the X-Press Pearl, Vitaly Tyutkalo,” X-Press Feeders said.

“He has missed a daughter's wedding and his other daughter's graduation and, like many others, continues to suffer because of unreasonable delays.”

Source: Seatrade Maritime News