The Supreme Court yesterday (24) ordered Sea Consortium Lanka (Pvt) Ltd, MV X-Press Pearl, and its affiliated companies to pay an initial compensation of USD 1 billion within a year for the extensive environmental and economic damages caused by the X-Press Pearl disaster.
According to the judgement, the first instalment of this payment must be made to the Secretary to the Treasury on or before September 23, 2025.
This landmark ruling was delivered by a five-judge bench headed by Chief Justice Jayantha Jayasuriya, along with Justices Yasantha Kodagoda, Shiran Gooneratne, Achala Wengappuli, and Priyantha Fernando. The judgement spans 361 pages, reflecting the gravity of the case.
Officials who failed to carry out their statutory duties have violated fundamental rights
The Court found that former State Minister of Urban Development and Coast Conservation, Nalaka Godahewa, and former Chairperson of the Marine Environment Protection Authority (MEPA), Dharshani Lahandapura, had failed to carry out their statutory duties, thus violating citizens’ fundamental rights under Article 12(1) of the Constitution.
Further, Sea Consortium Lanka (Pvt) Ltd, the local agent for MV X-Press Pearl, has been ordered to provide the names, current addresses, and contact details of all directors and principal executive officers involved with the vessel as at June 2, 2021. This information must be submitted via an affidavit sworn by the company’s Chief Executive Officer.
The Court also directed the Criminal Investigation Department (CID) to commence criminal investigations based on the Attorney General’s advice into what was termed an ‘unreasonable, irrational, and arbitrary’ decision to pursue civil litigation in Singapore rather than prosecuting under Sri Lanka’s Admiralty jurisdiction. The CID has been instructed to complete these investigations within three months.
In a significant observation, the Chief Justice ruled that the Attorney General failed to fulfil his statutory duty by not prosecuting the vessel’s owners and operators under Section 26(a) of the Marine Pollution Prevention Act, thereby infringing upon the fundamental rights of citizens.
The Supreme Court has directed the establishment of two key bodies:
1. MV X-Press Pearl Compensation Commission, chaired by retired Supreme Court Justice E.A.G.R. Amarasekera, to oversee compensation-related matters.
2. MV X-Press Pearl Marine and Coastal Environment Restoration and Protection Committee, chaired by the Secretary to the Ministry of Environment (ex-officio), to focus on environmental restoration and protection.
Both bodies, including their chairpersons and appointed experts, will be collectively accountable to the Supreme Court for implementing their mandates.
CIABOC has been instructed to conduct a fresh inquiry into allegations of bribery
Additionally, the Director General of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has been instructed to conduct a fresh inquiry into allegations of bribery and corruption connected to this case, replacing the previous investigations deemed inadequate.
The Court also ordered the Attorney General to review all evidence gathered by the CID, MEPA, and other authorities to initiate criminal proceedings where warranted. Moreover, the petitioners are entitled to recover their full litigation costs from the Attorney General, covering counsel fees, instructing attorney payments, and documentation expenses.
To monitor the implementation of these directives, the Supreme Court will reconvene on September 25 to evaluate progress. The Attorney General has been permitted to seek reimbursement for these payments from the Compensation Commission once disbursed.
One of Sri Lanka’s worst environmental disasters
The MV X-Press Pearl, a Singapore-flagged container vessel carrying chemicals, caught fire and sank off the Colombo coast in May 2021. It released tonnes of plastic pellets and hazardous substances into the sea, causing widespread damage to marine life, fisheries, and the coastal environment. Experts have termed it the worst maritime pollution disaster in Sri Lankan history.
Environmental groups and fisherfolk continue to demand transparency and accountability for the prolonged legal processes and ecological destruction.
The president too among respondents in the FR petition against XPress Pearl accident!
