The Japan Times - Singapore firm rejects paying $1bn Sri Lankan pollution damages

EUR -
AED 4.257664
AFN 73.026624
ALL 96.238144
AMD 437.582231
ANG 2.074968
AOA 1062.937298
ARS 1598.08421
AUD 1.645579
AWG 2.089361
AZN 1.97515
BAM 1.95864
BBD 2.333975
BDT 142.192527
BGN 1.981339
BHD 0.43431
BIF 3442.663586
BMD 1.159146
BND 1.482068
BOB 8.007716
BRL 6.159011
BSD 1.158876
BTN 108.338579
BWP 15.802121
BYN 3.515914
BYR 22719.261378
BZD 2.33067
CAD 1.591566
CDF 2637.057544
CHF 0.913917
CLF 0.027244
CLP 1075.745893
CNY 7.982348
CNH 8.005172
COP 4303.433806
CRC 541.282631
CUC 1.159146
CUP 30.717369
CVE 111.1046
CZK 24.515015
DJF 206.003881
DKK 7.48519
DOP 68.390029
DZD 152.108556
EGP 59.995792
ERN 17.38719
ETB 182.160246
FJD 2.566871
FKP 0.87126
GBP 0.86899
GEL 3.147128
GGP 0.87126
GHS 12.640533
GIP 0.87126
GMD 85.201694
GNF 10174.408376
GTQ 8.876835
GYD 242.454744
HKD 9.082315
HNL 30.787368
HRK 7.547552
HTG 152.028504
HUF 393.739159
IDR 19654.711213
ILS 3.60393
IMP 0.87126
INR 109.016
IQD 1518.481245
IRR 1525001.44174
ISK 144.047519
JEP 0.87126
JMD 182.063242
JOD 0.82188
JPY 184.581294
KES 150.229726
KGS 101.364887
KHR 4648.175821
KMF 494.955743
KPW 1043.080849
KRW 1744.874492
KWD 0.35536
KYD 0.965713
KZT 557.135552
LAK 24904.251971
LBP 103801.523689
LKR 361.50269
LRD 212.558441
LSL 19.717515
LTL 3.422657
LVL 0.701156
LYD 7.395793
MAD 10.850191
MDL 20.181528
MGA 4833.639175
MKD 61.634787
MMK 2434.137979
MNT 4156.167228
MOP 9.354025
MRU 46.516967
MUR 53.904625
MVR 17.920835
MWK 2013.436982
MXN 20.747095
MYR 4.565921
MZN 74.073751
NAD 19.508864
NGN 1572.092184
NIO 42.564277
NOK 11.093021
NPR 173.341379
NZD 1.985179
OMR 0.442313
PAB 1.158896
PEN 4.032714
PGK 4.997948
PHP 69.723065
PKR 323.63785
PLN 4.282755
PYG 7568.943802
QAR 4.224512
RON 5.101986
RSD 117.884032
RUB 96.003268
RWF 1691.193997
SAR 4.352659
SBD 9.33305
SCR 16.654324
SDG 696.647132
SEK 10.831104
SGD 1.486377
SHP 0.86966
SLE 28.486057
SLL 24306.724357
SOS 662.456177
SRD 43.45349
STD 23991.981659
STN 24.939026
SVC 10.139705
SYP 128.128397
SZL 19.508855
THB 38.008825
TJS 11.130786
TMT 4.068602
TND 3.372
TOP 2.790945
TRY 51.328032
TTD 7.862368
TWD 37.135217
TZS 2998.321243
UAH 50.766603
UGX 4380.333447
USD 1.159146
UYU 46.697721
UZS 14135.785719
VES 527.05282
VND 30499.449254
VUV 138.346896
WST 3.161587
XAF 656.918161
XAG 0.017031
XAU 0.000257
XCD 3.13265
XCG 2.08852
XDR 0.81819
XOF 661.296951
XPF 119.331742
YER 276.576393
ZAR 19.853279
ZMK 10433.709028
ZMW 22.627107
ZWL 373.244535
  • RIO

    -2.5000

    83.15

    -3.01%

  • RBGPF

    -13.5000

    69

    -19.57%

  • CMSC

    -0.2000

    22.65

    -0.88%

  • BTI

    -1.3500

    57.37

    -2.35%

  • BCE

    0.0600

    25.79

    +0.23%

  • NGG

    -3.5400

    81.99

    -4.32%

  • CMSD

    -0.2420

    22.658

    -1.07%

  • BCC

    -1.5600

    68.3

    -2.28%

  • RELX

    -0.4600

    33.36

    -1.38%

  • VOD

    -0.0900

    14.33

    -0.63%

  • GSK

    -0.5300

    51.84

    -1.02%

  • AZN

    -5.3300

    183.6

    -2.9%

  • RYCEF

    -1.2600

    15.34

    -8.21%

  • JRI

    -0.3900

    11.77

    -3.31%

  • BP

    -1.0800

    44.78

    -2.41%

Singapore firm rejects paying $1bn Sri Lankan pollution damages

Singapore firm rejects paying $1bn Sri Lankan pollution damages

A Singapore shipping company told AFP on Tuesday it will refuse to pay Sri Lankan court-ordered damages of US$1 billion for causing that country's worst case of environmental pollution.

Text size:

In an exclusive interview, X-Press Feeders chief executive Shmuel Yoskovitz said he believed paying would have wide-ranging implications on global shipping and "set a dangerous precedent".

The company operated the MV X-Press Pearl that sank off Colombo Port in June 2021 after a fire -- believed caused by a nitric acid leak -- that raged for nearly two weeks.

Its cargo included 81 containers of hazardous goods, including acids and lead ingots, and hundreds of tonnes of plastic pellets.

The ship was refused permission by ports in Qatar and India to offload the leaking nitric acid before it arrived in Sri Lankan waters.

Tonnes of microplastic granules from the ship inundated an 80-kilometre (50-mile) stretch of beach along Sri Lanka's western coast. Fishing was prohibited for months.

Sri Lanka's Supreme Court in July ordered the company to pay Colombo an "initial" US$1 billion in damages within a year, with the first tranche of US$250 million to be paid by Tuesday.

It also ordered the company "to make such other and further payments" in the future as the court may direct.

- 'Hanging guillotine' -

Yoskovitz rejected the open-ended nature of the penalty.

"We are not paying because the whole base of maritime trade is based on the limitation of liability. This judgment undermines this limitation of liability," he told AFP.

"Any payment towards the judgment could set a dangerous precedent for how maritime incidents will be resolved in the future," he said.

Sri Lanka's government said it would ask its chief prosecutor what action it could take.

"We will be guided by the advice of the attorney general on what further steps to take," government spokesman and media minister Nalinda Jayatissa told reporters in Colombo.

The United Nations office in Colombo noted that the "polluter pays" principle was enshrined in global agreements, including the UN Convention on the Law of the Sea.

"The Supreme Court's ruling is a vital step toward justice and accountability," the UN in Sri Lanka said on X.

Yoskovitz said the absence of limitations could lead to higher insurance premiums, which would be ultimately passed on to consumers.

The chief executive again apologised for the incident, saying the company recognised the disaster and was trying to make amends.

He said X-Press Feeders had already spent $170 million to remove the wreck, clean up the seabed and beaches, and compensate affected fishermen.

"We are not trying to hide... We are willing to pay more, but it has to be under certain marine conventions and an amount that is full and final and then it can be settled, and we can move on," he said.

"But to live under this hanging guillotine -- it is simply impossible to operate like this."

- Long-term effects -

In Colombo, Sri Lanka's Supreme Court has scheduled a hearing on Thursday about the implementation of its decision.

One of the petitioners who sought compensation for the pollution has called for further research to determine the full extent of the damage to the island's marine ecosystems.

"If you visit the coastlines today, there is nothing visible in terms of plastic pollution. A major clean-up took place soon after the X-Press Pearl incident, but the effects of the pollution will be felt for a long time," said Hemantha Withanage from the Centre for Environmental Justice.

It remains unclear how Sri Lanka's Supreme Court could enforce its decision.

However, in its 361-page decision in July, the court ordered the police and the state prosecutor to initiate criminal proceedings for non-compliance if the parties were present in Sri Lanka.

Yoskovitz expressed concern over the ship's Russian captain, Vitaly Tyutkalo, who has been banned from leaving Sri Lanka for more than four years, as well as the company's third-party agents there.

The firm had offered to pay a fine for the skipper's release, but this was refused, according to Yoskovitz.

X-Press Feeders obtained an order from London's Admiralty Court in July 2023, limiting its liability to a maximum of 19 million pounds (US$25 million), but Sri Lanka has challenged that.

The Sri Lankan government also filed a lawsuit against the ship's owners in the Singapore International Commercial Court. But that has been stayed pending the result of the case in London, with a pre-trial hearing expected in May 2026.

K.Nakajima--JT