X-Press Feeders, the former operator of the ill-fated container ship X-Press Pearl, has announced it is pausing payouts tied to what is now recognized as Sri Lanka’s largest environmental disaster. The decision comes after the Supreme Court of Sri Lanka ordered an initial $250 million payment as part of an interim $1 billion compensation ruling.
Shmuel Yoskovitz, CEO of X-Press Feeders, defended the move, warning that immediate payment could set a dangerous precedent for maritime liability worldwide.
“While we respect the judicial process, the ruling leaves open the possibility of additional and potentially unlimited compensation. Any payment towards the judgment could set a dangerous precedent for how maritime incidents will be resolved in the future. It is vital that any compensation is substantiated, proportionate and consistent with international conventions,” Yoskovitz said.
The X-Press Pearl, a brand-new 2,700 TEU feeder vessel, sank off Colombo in June 2021 after a fire erupted in a container carrying leaking nitric acid. The disaster unleashed hundreds of tonnes of plastic pellets into Sri Lanka’s oceans, devastating marine life and polluting beaches along the country’s coastline. Environmental experts describe it as the nation’s worst-ever marine pollution incident.
To date, X-Press Feeders reports that it has already disbursed over $170 million for wreck removal, environmental remediation, and compensation claims. The company also expressed ongoing concern over the treatment of the vessel’s master and local agents, who have faced prolonged travel bans, repeated investigations, arrests, and court proceedings despite lacking decision-making authority during the incident.
“We are open to direct dialogue with the relevant Sri Lankan authorities and have been actively seeking to engage with their representatives. We hope to achieve an outcome that is evidence-based, fair, proportionate and consistent with international practice,” the company added.
The court ruling, paired with X-Press Feeders’ refusal to pay immediately, has sparked debate over accountability, compensation, and the broader responsibilities of shipping companies in the wake of environmental disasters. Observers warn the case could redefine how maritime disasters are addressed legally and financially across the globe.
