• X-Press Feeders rejects Sri Lanka's $1 billion damages ruling for pollution.
• Company cites fears of setting a dangerous precedent for maritime trade.
• They have paid $170 million for clean-up but not the court-ordered damages.
• The initial payment of $1 million was made by the ship's Sri Lankan agent.
• Ongoing litigation includes further actions by the Sri Lankan government.

A Singapore shipping company, X-Press Feeders, has publicly rejected a Sri Lankan court's verdict mandating the payment of US$1 billion for environmental damages stemming from the MV X-Press Pearl incident, which is considered the worst case of pollution in the country’s history. CEO Shmuel Yoskovitz expresses concerns that compliance would "set a dangerous precedent" that could adversely affect the global shipping industry, as the company maintains that the judgment undermines essential principles of maritime law concerning limitation of liability, according to Channel News Asia, India Times, and The Jakarta Post.

The MV X-Press Pearl, which sank off the coast of Colombo in June 2021 due to a fire linked to a nitric acid leak, was carrying a significant load, including 81 containers of hazardous materials and microplastic pellets. Following the incident, an 80-kilometer stretch of Sri Lankan coastline was inundated with microplastics, leading to a fishing ban that persisted for months. The court's decision mandated an initial payment of US$250 million by September 23, with provisions for further payments as determined by future court rulings, as reported by South China Morning Post and Channel News Asia.

In a statement, Yoskovitz emphasized the financial hardships that could ensue from the ruling, suggesting liability without limits would lead to increased insurance costs, ultimately passed on to consumers. He mentioned that X-Press Feeders had already invested US$170 million in cleanup efforts and compensations for affected fishermen, thus expressing a willingness to settle under clearly defined terms. Environmental activist Hemantha Withanage pointed out the long-term impact of the pollution on marine ecosystems and implied the necessity for further research into the true extent of the damage, according to India Times and The Jakarta Post.

The litigation surrounding this event is ongoing, with Sri Lanka's Supreme Court set to decide on enforcement measures for the damages. The ship's local agent, Sea Consortium (Private) Limited, indicated they made a symbolic initial payment of US$1 million in compliance with the court's ruling, yet the X-Press Feeders company continues to refuse full payment, underscoring the complexities in resolving this case. Discussions regarding further legal strategies are expected as the Sri Lankan government consults its chief prosecutor on next steps, as noted by South China Morning Post and India Times.