- Sri Lanka’s Supreme Court has ordered $1 billion in compensation from the owners and local agents of the MV X-Press Pearl, which sank off Colombo in 2021, causing the worst maritime disaster in the island’s history and a massive marine plastic spill.
- The court held both the vessel’s operators and two former Sri Lankan officials accountable, citing negligence and violations of citizens’ constitutional rights.
- The July 24 ruling calls for the establishment of an independent compensation commission and requires the first installment of damages to be paid by September 2025, with a review hearing scheduled for the same month.
- Environmentalists describe the judgment as a milestone in line with the “polluter pays” principle, offering a potential model for environmental justice across the Global South.
COLOMBO — In a landmark ruling, Sri Lanka’s Supreme Court has ordered the owners and operators of the MV X-Press Pearl to pay $1 billion in compensation for the devastating environmental and economic damage caused by the ship’s sinking off the island’s western coast in 2021. Delivered in a detailed 361-page judgment by a five-judge bench led by outgoing Chief Justice Murdu Fernando, the decision is hailed as a milestone in holding corporate polluters accountable through domestic courts.
“The verdict sends a strong message that environmental crimes cannot go unchecked, even when committed by powerful transnational actors,” said Dan Malika Gunasekera, an expert in maritime law who followed the X-Press Pearl proceedings closely.
The X-Press Pearl, a Singapore-flagged container ship, caught fire in May 2021 and sank off Colombo after burning for nearly two weeks. Onboard were 1,486 containers, including hazardous chemicals and 78 metric tons of plastic nurdles — small resin pellets used in plastic manufacturing. An estimated 70-75 billion nurdles were released into Sri Lankan waters, blanketing the coastline and causing what experts have described as the world’s worst marine plastic spill.
World’s worst marine plastic spill
The court also directed the ship’s owners and its local agents to pay compensation within a year, with the first instalment due by Sept. 23, 2025 and a review hearing to take place that same month. The court found that the X-Press Pearl already had a fire in several containers due to a chemical leakage, but the captain, operator and local agent of the ship intentionally have concealed important and accurate information about the ship’s condition from the Colombo Port. This was done to gain permission to enter the port, anchor and use the berthing facilities, even though problems on the ship had developed over time and existed when it entered Sri Lanka’s territorial waters, the verdict pronounced.
The judgment consolidated four separate public interest petitions and emerged as a critical legal response to the disaster, especially after widespread public criticism of the Sri Lankan government’s initial decision to file the main legal case in Singapore rather than under domestic law.
Gunasekara argued that pursuing the case abroad exposed Sri Lanka to compensation caps under Singaporean law and risked weakening the country’s legal stance. “This ruling establishes that Sri Lankan law contains the necessary provisions to prosecute such environmental crimes,” Gunasekara said.
Sri Lankan law robust
“Filing the main case in Singapore was a mistake that could cost Sri Lanka billions,” Gunasekara told Mongabay. Meanwhile, Ravindranath Dabare, board chairman and senior advisor of the Colombo-based environmental NGO the Centre for Environmental Justice (CEJ), a petitioner of the case, noted the status of the Singapore case remains unclear.
“Millions of dollars have already been spent on foreign lawyers and court proceedings, and if Sri Lanka loses that case or receives reduced compensation due to legal caps, both money and justice will be lost,” Dabare told Mongabay.
He also emphasized the importance of the local case in reinforcing the “polluter pays” principle. “This ruling strengthens the global conversation around environmental accountability and puts Sri Lanka on the map as a country where environmental rights can be defended in court,” he said.
Concerns remain, however, about whether the X-Press Pearl operators will comply with the court order.
Under Sri Lankan law, judgments delivered by the Supreme Court are final, with no appeal mechanism beyond that. “There is no room for appeal. The law is clear: They must pay,” Dabare said, expressing cautious optimism that the companies involved will honor the ruling.
Assessing damage
In the immediate aftermath of the disaster, Sri Lanka formed an expert committee under the Marine Environment Protection Authority (MEPA) to assess the environmental damage. According to its report, the ecological toll was staggering: 417 sea turtles, 48 dolphins and eight whales were confirmed dead in the weeks following the spill, with fish die-offs and phytoplankton blooms pointing to deeper marine ecosystem disruption. The pollution also forced a ban on fishing for several months, affecting thousands of coastal families dependent on the sea for their livelihoods.
The committee produced two interim reports that played a key role in the legal proceedings. But its work has since stalled. Prashanthi Gunawardene, co-chair of the expert panel, told Mongabay that the group has not been convened since November 2022, citing a lack of government interest and support. “Despite working under immense pressure and with limited resources, we’re proud the reports we submitted were useful in securing due compensation,” she said. “But long-term monitoring was always part of our plan and that work must continue,” she added.
The Supreme Court addressed this gap by ordering the formation of a compensation commission to assess further damages and ensure the funds are used for long-term ecological recovery.
Polluter pays principle
The ruling held the former state minister for urban development and coast conservation and then-MEPA chairperson responsible for failing to perform their responsibility with due care, and that their inaction resulted in an inadequate response that violated the constitutional rights of the public. The judgment also ordered investigations into possible misconduct during the compensation negotiations.
Previously, the CEJ had pushed for a presidential committee to probe alleged irregularities in how the disaster was handled. Responding to mounting pressure, the Ministry of Environment pledged to establish such a committee, though it is yet to be formalized.
“The government now has a critical responsibility to ensure that the court’s ruling translates into real-world impact, restoration, accountability and justice,” Dabare said. “The review hearing in September will be a key test of whether this landmark judgment becomes a turning point or a missed opportunity,” he added.
In a troubling parallel, Sri Lanka’s coasts were once again polluted by nurdles following the sinking of MSC ELSA 3 off the coast of Kerala, India, in May. Ocean currents carried plastic pellets to Sri Lanka’s northern and western shores, prompting cleanup operations by local authorities and volunteers.
“While the government is responding, we must recognize that when private polluters aren’t held accountable, the public pays the price,” said Anita Perera, a campaigner at Greenpeace South Asia. “This cycle of negligence and impunity must end. It’s not the people who should bear the cost, and it’s the polluting companies. The Sri Lankan government must ensure the owners of ELSA 3 are held fully accountable, too, just like X-Press Pearl,” Perera told Mongabay.
As Sri Lanka grapples with repeated marine pollution incidents, the X-Press Pearl judgment may serve as a beacon of hope for environmental justice not only for the island nation but for many others across the Global South facing similar challenges, Gunasekara emphasized.
Banner image: The X-Press Pearl vessel sank off Sri Lanka’s west coast after a fire broke out due to a chemical leak that began even before it entered Sri Lankan territorial waters, and since this critical information was not reported to the Colombo Port authorities, the court found the X-Press Pearl team responsible. Image courtesy of the Sri Lanka Air Force.
Credits
