X-Press Feeders pauses payments to Sri Lanka

X-Press Feeders has announced a suspension of payouts related to Sri Lanka’s most significant environmental disaster, stemming from the sinking of the X-Press Pearl in June 2021. The company, along with its insurer, is responding to a recent Supreme Court ruling that mandates an initial payment of $250 million as part of a broader $1 billion compensation order. The CEO of X-Press Feeders expressed concerns that any payment could set a troubling precedent for future maritime incidents.

Concerns Over Judicial Ruling and Compensation

Shmuel Yoskovitz, CEO of X-Press Feeders, emphasized the company’s respect for the judicial process but raised alarms about the implications of the Supreme Court’s ruling. He noted that the decision leaves the door open for additional compensation claims, which could be unlimited. Yoskovitz stated, “It is vital that any compensation is substantiated, proportionate and consistent with international conventions.” This caution reflects the company’s apprehension about the potential financial impact of the ruling on maritime operations globally.

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The X-Press Pearl, a newly launched feeder vessel, sank off the coast of Colombo after a fire ignited in a container filled with leaking nitric acid. This incident has been classified as Sri Lanka’s worst marine pollution disaster, resulting in the release of hundreds of tonnes of plastic pellets into the ocean and onto local beaches. To date, X-Press Feeders has reported expenditures exceeding $170 million for wreck removal, environmental cleanup, and compensation claims related to the disaster.

In addition to financial concerns, X-Press Feeders has voiced its worries regarding the treatment of the vessel’s master and local agents in Sri Lanka. The ship’s captain has been unable to return home for over four years due to a court-imposed travel ban, while the company’s local agents have faced ongoing investigations, arrests, and legal proceedings despite having no decision-making authority in the incident. The company has expressed a willingness to engage in direct dialogue with Sri Lankan authorities to seek a fair and evidence-based resolution consistent with international practices.