X-Press Feeders has suspended further payments related to the 2021 X-Press Pearl disaster, citing concerns over a Sri Lankan Supreme Court ruling that mandates an interim payment of USD 1 billion, including an immediate USD 250 million installment. Together with its insurers, the company warned the judgment risks creating a precedent of potentially unlimited liability beyond established maritime conventions.
CEO Shmuel Yoskovitz emphasized that while the company respects judicial processes, any compensation must be “substantiated, proportionate, and consistent with international conventions.” To date, X-Press Feeders has paid more than USD 170 million towards wreck removal, coastal clean-up, and compensation for impacted communities.
The X-Press Pearl, a 2,700 TEU feeder vessel, sank off Colombo in June 2021 following a container fire involving leaking nitric acid. The accident resulted in Sri Lanka’s worst-ever environmental disaster, releasing hundreds of tonnes of plastic pellets across beaches and marine habitats.
Beyond financial issues, X-Press Feeders expressed deep concern for the treatment of its crew and local representatives. The ship’s Master has been unable to return home for over four years due to a court-imposed travel ban, while local agents — who lacked operational authority — continue to face investigations, arrests, and prosecutions.
The company also noted that the failure of authorities to permit offloading of hazardous cargo before the incident, combined with inspection lapses, has been overlooked. X-Press Feeders warned that disproportionate penalties risk undermining investor confidence, raising trade costs, and weakening Sri Lanka’s position within international maritime law.
Reaffirming its stance, the carrier stated: “We are open to constructive dialogue with Sri Lankan authorities and remain committed to reaching an outcome that is evidence-based, fair, and aligned with international practice.”
