COLOMBO, July 25 – The Supreme Court of Sri Lanka has ordered the owners and affiliated parties of the X-Press Pearl container ship to pay $1 billion in compensation for what the court described as the worst marine plastic spill in recorded history.
The Singapore-flagged vessel, which caught fire and sank off Sri Lanka’s western coast in June 2021, caused severe and lasting damage to the country’s marine ecosystem. According to the ruling, the vessel was carrying nearly 47,000 bags of plastic pellets—known as nurdles—which were released into the sea, contaminating hundreds of kilometers of coastline across the western, southern, and northern provinces.
The disaster was triggered by a nitric acid leak that began before the ship’s arrival in Colombo. Despite being denied entry by ports in Qatar and India, the vessel was permitted to dock in Sri Lanka. Once anchored, a fire broke out on May 20, 2021, escalating into a full-blown catastrophe that led to the total loss of the ship by June 2.
In a sharply worded verdict, the court said the vessel’s Master, Operator, and local Agent deliberately concealed the hazardous nature of the ship’s condition from the Colombo Harbour Master. The court described this as a “deliberate suppression” of vital information that endangered Sri Lanka’s territorial waters.
The court found the “X-Press Pearl Group”—comprising owner EOS Shipping, bareboat charterer Killiney Shipping, time charterer Sea Consortium Pte Ltd, and local agent Sea Consortium Lanka—solely responsible for the environmental damage. They have been ordered to pay the full $1 billion compensation in three installments:
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$250 million by September 23, 2025
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$500 million within six months of the judgement
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Final $250 million within one year
Funds will be deposited into a newly created government account, the “MV X-Press Pearl Compensation and Environment Restoration and Protection Fund”, managed by the Secretary to the Treasury.
In response, X-Press Feeders, the vessel’s former operator, expressed strong disappointment with the verdict and said it is reviewing the 361-page ruling with legal counsel and insurers. “We are liaising with relevant stakeholders, including the International Group of Protection and Indemnity Clubs, to assess our next steps,” the company said in a statement.