Singapore Shipping Firm Refuses $1 Billion Sri Lanka Pollution Fine

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A Singapore-based shipping company, X-Press Feeders, faced one of the biggest environmental disasters in Sri Lanka’s history when its ship, the MV X-Press Pearl, caught fire near Colombo Port. The fire, which is believed to have started from a nitric acid leak, burned for almost two weeks, causing massive damage to the surrounding environment and marine life. The ship was carrying 81 containers of dangerous goods, including acids, lead ingots, and hundreds of tonnes of plastic pellets, which later washed up on the Sri Lankan coastline.

After the disaster, beaches along an 80-kilometer stretch of Sri Lanka’s western coast were covered in microplastic granules. Fishing activities were suspended for months as authorities tried to contain the damage. The incident was so severe that neighboring countries like Qatar and India refused the ship permission to offload its leaking nitric acid before it reached Sri Lankan waters.

In July 2025, Sri Lanka’s Supreme Court ruled that X-Press Feeders must pay $1 billion as compensation for the disaster. This payment was described as an “initial” amount, with $250 million due immediately, and additional payments could be ordered in the future depending on the court’s evaluation. The court also directed authorities to take further action to enforce compliance if needed.

However, the company has strongly refused to pay the full amount. Shmuel Yoskovitz, the CEO of X-Press Feeders, said paying such a large and open-ended penalty would set a “dangerous precedent” for global shipping. He explained that the international maritime trade operates on the principle of limited liability, and this court ruling could disrupt standard practices and increase costs for shipping companies worldwide.

The CEO added that while the company is willing to pay under certain marine conventions with a fixed and final amount, it cannot operate under what he described as a “hanging guillotine” of open-ended liability. X-Press Feeders has already spent $170 million to remove the wreck, clean the seabed and beaches, and compensate local fishermen.

Sri Lanka’s government, meanwhile, said it would consult the attorney general to decide the next steps. The United Nations office in Colombo supported the Supreme Court’s ruling, emphasizing the global “polluter pays” principle, which holds that companies causing environmental damage are responsible for compensation.

Environmental experts warn that the long-term effects of the disaster could be felt for years. Even though most visible plastic pollution was cleaned shortly after the incident, the microplastics that entered the ocean may continue to harm marine life and ecosystems. Hemantha Withanage from the Centre for Environmental Justice highlighted that the full impact on Sri Lanka’s marine environment requires further study.

The legal situation is complex. X-Press Feeders had previously obtained an order from the Admiralty Court in London limiting its liability to $25 million. Sri Lanka challenged this, and it also filed a lawsuit against the company in Singapore’s International Commercial Court. That case is currently on hold until the London proceedings conclude, with pre-trial hearings expected in May 2026.

The situation has also affected individuals. The ship’s Russian captain, Vitaly Tyutkalo, has been banned from leaving Sri Lanka for over four years. The company offered to pay a fine for his release, but the government refused. The Supreme Court has also directed the police and prosecutors to start criminal proceedings for non-compliance if the company or its agents fail to act.

This case has sparked global debate on how maritime disasters are handled and who should bear responsibility. It raises questions about international shipping laws, environmental accountability, and the limits of liability for companies operating in dangerous industries.

As Sri Lanka’s Supreme Court prepares to hold hearings on Thursday regarding the implementation of its decision, many are watching closely to see how the situation unfolds. The outcome could have far-reaching effects not just for X-Press Feeders but for global maritime trade and environmental regulations.