X-PRESS PEARL

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X-Press Feeders refusing to pay a preliminary compensation

The shipping company X-Press Feeders and its insurance company are refusing to pay a preliminary compensation of $250 million, as demanded in a judgment issued by the Sri Lankan Supreme Court in July. The total compensation could amount to a billion dollars and perhaps much more. "While we respect the legal process, the judgment opens the possibility of further and potentially unlimited compensation. Any payment could set a dangerous precedent for how maritime incidents will be resolved in the future," said Shmuel Yoskovitz, CEO of X-Press Feeders. The 'X-Press Pearl' sank off Colombo in June 2021 after a fire broke out in a container with leaking nitric acid, triggering the worst pollution disaster ever in Sri Lanka. According to the shipping company, it has paid more than $170 million to date for the wreck removal, cleanup and compensation claims.

Operator challenged court ruling

X-Press Feeders as the former operator of the 'X-Press Pearl', has challenged the recent Sri Lankan Supreme Court ruling that ordered the company to pay an initial $1 billion in damages within one year related to the vessel’s casualty. The judgment, handed down in late July 2025, has been called by the London P&I Club “an extraordinary and deeply troubling turn of events” that potentially undermined fundamental principles of maritime law. At the heart of the dispute was the continued detention of the vessel’s master, who has been unable to leave Sri Lanka for 4,5 years due to a court-ordered travel ban. X-Press Feeders noted that despite offering to deposit the maximum possible fine for the charges he faced, he was still separated from his family and unable to resume his life or career.

X Press Feeders s to pay $1 billion in interim damages

The Supreme Court of Sri Lanka ordered on July 24, that the Singaporean shipping company X Press Feeders has to pay $1 billion in interim damages for the sinking of the "X-Press Pearl". The Sri Lankan authorities have requested $40 million in compensation the day after the accident, now up to $1 billion, which could increase further depending on the calculation of other compensation, according to the judgment. The accident caused an unprecedented ecological disaster, preventing all fishing activity for several months and causing significant deposits of chemicals and plastic pellets along 80 kilometres of coastline. Despite obtaining an order from a London maritime court in July 2023, limiting their liability to a maximum of $25 million, the Singaporean owners are facing an appeal of this decision by Sri Lanka and are now awaiting a decision from the London court. The owners have already had to pay $7.85 million for cleanup and compensation to the fishermen. Sri Lankan authorities believe the fire was caused by a nitric acid leak, which the crew appeared to have been aware of nine days before the fire began. Ports in Qatar and India had refused to unload the leaking nitric acid.