X-Press Feeders Declines $1B Sri Lanka Pollution Damage Payment

X-Press Feeders, the former operator of the MV X-Press Pearl, has refused to pay the US$1 billion damages ordered by Sri Lanka's Supreme Court for the 2021 environmental disaster caused by the ship's sinking off Colombo. The court mandated an initial payment of US$250 million by September 23, 2025, with the full amount due within a year, but the company, after consultation with its insurer, stated it is unable to make the payment while seeking further engagement with Sri Lankan authorities. CEO Shmuel Yoskovitz expressed concerns that the ruling could set a dangerous precedent for maritime liability by allowing potentially unlimited compensation and undermining established limitations under international conventions. Despite over US$170 million already spent on wreck removal, environmental remediation, and settled compensation claims, X-Press Feeders stresses that any compensation must be proportionate and consistent with international law. The disaster released billions of plastic nurdles and hazardous materials, severely affecting Sri Lanka's marine environment and coastal communities. The company also pointed out the challenges in handling hazardous cargo, including the ship being denied offloading permissions by ports in Qatar and India prior to reaching Sri Lanka.