X-Press Feeders Rejects US$1 Billion Sri Lankan Pollution Damages

Singapore Firm Declines Landmark US$1 Billion Payment for X-Press Pearl Disaster

X-Press Feeders, a Singapore-based shipping company, has announced its refusal to pay US$1 billion in court-ordered damages to Sri Lanka. The payment was mandated by the Sri Lankan Supreme Court for the environmental devastation caused by the 2021 sinking of the MV X-Press Pearl, which resulted in the country's worst marine pollution incident. The company's chief executive, Shmuel Yoskovitz, stated that complying with the judgment would 'set a dangerous precedent' for the global maritime industry.

Background of the MV X-Press Pearl Incident

The incident dates back to May 2021 when the MV X-Press Pearl, operated by X-Press Feeders, caught fire off the coast of Colombo Port. The fire, believed to have originated from a nitric acid leak, raged for nearly two weeks before the vessel sank in June 2021. The ship's cargo included 81 containers of hazardous goods, such as acids and lead ingots, alongside hundreds of tonnes of plastic pellets, also known as nurdles. Ports in Qatar and India had reportedly denied permission for the vessel to offload the leaking nitric acid prior to its arrival in Sri Lankan waters.

The environmental impact was catastrophic. Tonnes of microplastic granules from the ship inundated an 80-kilometer stretch of beach along Sri Lanka's western coast, leading to a ban on fishing for several months. The disaster is considered the worst marine ecological incident in Sri Lankan history, causing the deaths of hundreds of turtles, dolphins, and fish.

Court Ruling and Company's Stance

In July 2025, Sri Lanka's Supreme Court ordered X-Press Feeders, its owners, and local agents to pay an initial US$1 billion in damages within a year. The first installment of US$250 million was due by September 23, 2025, with subsequent payments of US$500 million within six months and the remaining balance within one year. The court's ruling invoked the 'polluter pays' principle.

However, X-Press Feeders has declined to make the payment, with CEO Shmuel Yoskovitz asserting that the judgment 'undermines this limitation of liability' which forms the 'whole base of maritime trade.' He also expressed concerns that the open-ended nature of the penalty could lead to higher insurance premiums, ultimately passed on to consumers. The company and its insurer stated they are 'unable to make payment at this stage' and are seeking further engagement with Sri Lankan authorities.

Previous Payments and Ongoing Legal Battles

Despite the refusal to pay the court-ordered damages, X-Press Feeders stated it has already spent over US$170 million on wreck removal, environmental remediation, and compensation claims, in cooperation with the Sri Lankan government. The company also highlighted that some compensation payments have not reached affected communities due to 'delays within Sri Lanka.'

In a related development, X-Press Feeders secured an order from London's Admiralty Court in July 2023, limiting its liability to a maximum of 19 million pounds (approximately US$25 million), a decision that Sri Lanka has challenged. The Sri Lankan government has also initiated a lawsuit against the ship's owners in the Singapore International Commercial Court. Furthermore, the company has raised concerns regarding the welfare of the vessel's Russian captain, Vitaly Tyutkalo, who has been subject to a court-ordered travel ban in Sri Lanka for over four years, and its local agents who face ongoing investigations.