Singapore Shipping Firm Rejects $1B Sri Lanka Pollution Fine

Post by : Meena Rani

A Singapore-based shipping company has refused to pay the US$1 billion damages ordered by Sri Lanka’s Supreme Court for the MV X-Press Pearl disaster, one of the worst environmental incidents in the country’s history.

The MV X-Press Pearl caught fire in June 2021 near Colombo Port, reportedly due to a nitric acid leak. The blaze lasted nearly two weeks before the vessel sank. Its cargo included 81 containers of hazardous chemicals, lead ingots, and hundreds of tonnes of plastic pellets, causing severe pollution along an 80-kilometre stretch of Sri Lanka’s western coastline. Fishing was banned for months as authorities struggled to contain the environmental damage.

The shipping company’s CEO, Shmuel Yoskovitz, said the company recognizes the disaster and has already spent US$170 million on cleanup operations, seabed recovery, and compensating affected fishermen. However, he described the court’s judgment as open-ended and “impossible to operate under,” warning it could set a dangerous precedent for global shipping.

“The judgment undermines the principle of limited liability in maritime trade,” Yoskovitz said. “Any payment under these conditions could disrupt the entire shipping industry and lead to higher costs that would ultimately affect consumers.”

Sri Lanka’s Supreme Court had ordered an initial payment of US$250 million by September 23 and allowed for further payments in the future. The court also directed authorities to pursue criminal proceedings in cases of non-compliance if the parties were present in Sri Lanka.

Environmental advocates have cautioned that the effects of the pollution may persist despite extensive cleanup efforts. “The immediate plastic pollution has been cleared, but microplastics and chemical residues will impact marine life for years,” said Hemantha Withanage from the Centre for Environmental Justice.

The company’s legal challenges extend beyond Sri Lanka. London’s Admiralty Court has limited its liability to approximately US$25 million, a ruling Sri Lanka has contested. Additionally, a related lawsuit in Singapore’s International Commercial Court is pending, with a pre-trial hearing scheduled for May 2026.

The Sri Lankan Supreme Court is set to hold a hearing on Thursday to discuss the enforcement of its judgment. Meanwhile, concerns remain over the long-term ecological impact and the fate of the ship’s crew and third-party agents involved in the incident.

Sri Lanka Supreme Court shipping case, Maritime liability limits, Hazardous cargo spill