The Supreme Court of Sri Lanka has ordered the owners, operators, and local agents of the X-Press Pearl to pay $1 billion in damages for environmental and economic losses caused by the 2021 fire and sinking of the vessel off Colombo.
The court held EOS Ro Pte. Limited, the vessel’s registered owner, and other parties accountable under the polluter-pays principle.
The Singapore-flagged ship was carrying 1,486 containers, including 81 with hazardous materials, when it entered Sri Lankan waters on May 19, 2021. One container was already leaking nitric acid. Ports at Jebel Ali, Hamad, and Hazira had earlier refused requests to offload the leaking container.
The vessel continued its voyage through a cyclone and arrived in Colombo, where it again requested permission to discharge the container. On May 20, 2021, a fire broke out on board, and by June 2, the ship had sunk around 9.5 nautical miles from the Port of Colombo.
The Supreme Court said the disaster caused “unprecedented devastation to the marine environment”, including severe damage to coral reefs, marine flora and fauna, and fishing livelihoods along the western coast. The ruling added that the catastrophe destroyed a “treasure trove” of ecosystems and inflicted heavy economic harm on fishing communities.
It was identified as the largest marine plastic spill in the world, releasing an estimated 75 billion nurdles (micro-plastics) along with a toxic mix of chemicals. The spill killed 417 turtles, 48 dolphins, eight whales, and large numbers of fish that later washed ashore. The contamination continues to affect phytoplankton, fish populations, and coastal ecosystems, raising concerns for long-term human health as well.
The court concluded that the owners and operators had suppressed critical information from Sri Lankan authorities, which prevented effective response efforts, adding that the operators failed to act on early warning signs such as flooding in bilges and the nitric acid leak spreading through hatch covers.
Court documents reveal tense exchanges between the ship’s master and company officials. On May 16, 2021, the master responded harshly when ordered to “control the situation,” saying, “what … control. We need to discharge … already three ports tell cannot discharge [but] you order me to control.”
Colombo’s Harbour Master explained why he canceled berthing permission that had been granted earlier. He stated there was no clear procedure to manage such emergencies, and that it was unsafe to allow a vessel at fire risk to berth without full information. He relied on his statutory responsibility to protect crew, port personnel, and infrastructure, adding that his boarding team had found the situation uncertain on May 20, before the fire escalated.
Legal analysts, including a review by Reed Smith, observed that the court’s decision focused on the conduct of the vessel’s owners, operators, and local agents. The court held that their mismanagement and lack of transparency were the primary causes of the disaster.
X-Press Feeders, the ship’s former operator, released a statement expressing concern with the decision. The company said the judgment directs payment of $1 billion within a year but unfairly targets the vessel’s master and local agents. It added that the master has been trapped in Sri Lanka for four and a half years due to a travel ban, despite offering to pay the maximum fine for his charges. According to the operator, neither the master nor the agents were given a chance to answer allegations during proceedings, effectively holding them as “human collateral.”
The company also argued that Sri Lankan authorities made errors in handling the incident. It said that despite requests, officials failed to order the vessel offshore, which could have reduced the scale of damage. While the court noted the inaction of the former Director of the Marine Environment Protection Authority, it did not assign accountability.
X-Press Feeders further pointed out that three ports had already refused to offload the leaking container, and Colombo authorities raised no alarms during inspections before the sinking. The operator warned that the ruling sets an “unprecedented level of risk” for global shipping, which could increase trade costs in Sri Lanka.
The company said it has already spent $150 million on wreck removal, nurdle cleanups, and compensation for fishermen. It acknowledged the need for compensation but insisted it should be based on fair, scientific assessments and should also recognize shortcomings in Sri Lanka’s response.
Environmentalists who filed the case argued that both the government and the vessel’s owners failed to prevent the fire from escalating. The Sri Lankan government has also launched a separate lawsuit in the Singapore International Commercial Court, seeking additional damages.
Sri Lankan authorities say the $1 billion compensation will go toward marine restoration and protection efforts, including cleanups, habitat recovery, and stronger safety measures for vessels carrying dangerous goods.
Reference: straitstimes
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