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MV X-Press Pearl disaster: Four options on the table for compensation

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By Ifham Nizam

The Sri Lankan government can opt for at least four compensation claims from the fire-stricken, Singapore flagged MV X-Press Pearl’s owners/insurance agents, a senior government official said.

“Though some of the claims could take time due to technical issues, we have a strong case when it comes to damage caused to marine biodiversity, which can be considered the biggest environmental catastrophe”, she said.

Citing the example of a similar disaster, the scientist said a claim for damages filed by the United Kingdom against a US-based ship dragged on for more than two decades.

Moves are underway to incorporate losses to the country’s fish production due to the fire, where chemicals mixing with the biodiversity hotspots within the sea bed have a detrimental impact on the fish harvest, she told The Sunday Island.

She also didn’t rule out the possibility of Sri Lanka being used as a dumping ground for chemical waste. “Some competitors don’t want to see Sri Lanka doing well in the shipping sector”.

She said the damage caused to the fisheries industry will be enormous particularly with small fish species where the adverse impact could be seen within two to three years.

The Wildlife Conservation Department said that apart from fish species, the harm done to sea grasses and nesting habitats, sea mammals and reptiles will also be substantial. “Our initial observations reveal the spill-over effect will last for more than 100 years”.

The operator of Ex-Press Pearl said the ship’s stern was resting on the seabed about 21 meters below the surface and the bow was settling down slowly. Salvage experts are monitoring the vessel’s condition and oil pollution.

The company said its experts were coordinating with the Sri Lanka Navy to deal with an oil spill.

Navy spokesman, Captain Indika de Silva said the navy and coastguard were bracing for an oil spill. India has sent three ships to help, including one specifically equipped to deal with marine pollution.

The Centre for Environmental Justice (CEJ) is contemplating filing a public interest litigation petition against the company that owns X-Press Pearl, Chairman, Ravindranath Dabare said.

“According to the Marine Pollution Prevention Act No. 35 of 2008, a civil suit can be filed under Section 35 and criminal action could be filed as per Section 26. We had a bitter experience with MT New Diamond as we claimed compensation based on the Polluter Pays Principle, the lawyer said.

The Marine Environment Protection Authority (MEPA) said it is prepared to face a possible oil spill from the stricken container ship off the coast of Sri Lanka.

Oil Containment Booms will be positioned around the vessel with chemical dispersants dropped from the air to prevent an oil leak from spreading, MEPA chief, Darshani Lahandapura, said.

“If the weather is not on our side, we will have to be ready for a beach clean-up and we need to be ready for it”, she said.

General (Retd) R. M. Daya Ratnayake, Chairman, Sri Lanka Ports Authority, told journalists the first point of action is to determine if the fuel in the vessel remains onboard. Thereafter, necessary measures will be taken.

With the immediate focus on minimizing any further damage to the environment, Oil Spill Response Limited has been tasked with tackling any possible spill in liaison with the International Tanker Owners’ Pollution Federation Ltd (ITOPF), which will provide technical expertise.

Both OSRL and ITOPF have people on the ground in Colombo coordinating with the Sri Lankan Navy on an established plan to deal with any possible oil spill and other pollutants.

Renowned Environmentalist, Suranjan Kodituwakku warned that the transfer of ownership of X-Press Pearl after the fire was brought under control could result in Sri Lanka not being able to obtain a proper assessment of the environmental damage or compensation.

“We hope the government will intervene, as required, given its experience, to obtain equitable restitution and compensation for the huge environmental damage,” Kodituwakku, who is also Chairman/CEO of the Green Movement of Sri Lanka Inc., said.

Meanwhile, Environment Minister Mahinda Amaraweera said that even if Sri Lanka receives Rs. 100 billion as compensation for the environmental damage caused, it won’t be sufficient to offset the enormous loss suffered as a result of the disaster,.

The government has focused attention on the extensive environmental destruction caused by the blaze and many decisions on handling the situation taken at a meeting chaired by President Gotabaya Rajapaksa, he said.

“An investigation should be launched into the cause of the fire and those responsible for allowing the container-carrier to enter the territorial waters of Sri Lanka dealt with under the law”, he told a news conference at the Environment Ministry.

The damage caused is beyond calculation. Therefore, however much compensation we may receive, it won’t be enough, he noted.

The President emphasized that priority should be given to the opinion of experts in mitigating the situation, the Minister said.

Andrew Leahy, Director for South East Asia of MTI Pte Ltd representing the operators of the vessel, told the media that water was filling inside the hull of the X-PRESS PEARL and salvors from the Netherlands are assessing the situation.

State Minister of Fisheries Kanchana Wijesekera said the Department of Fisheries has suspended vessels entering from the Negombo Lagoon and fishing from Panadura to Negombo with immediate effect as the salvage company involved in the vessel has indicated that the vessel was sinking at the current position.



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Prime Minister participates in high-level bilateral meetings at World Economic Forum

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Prime Minister Dr. Harini Amarasuriya participated in a series of high-level bilateral meetings on January 20 on the sidelines of the 56th Annual Meeting of the World Economic Forum in Davos-Klosters, Switzerland.

The Prime Minister attended a productive bilateral meeting with Mr. Jozef Síkela, European Commissioner for International Partnerships. During the discussion, both sides focused on strengthening Sri Lanka–EU cooperation and advancing mutual interests.

Prime Minister Amarasuriya also met with Mr. Masato Kanda, President and Chairperson of the Board of Directors of the Asian Development Bank (ADB), at the WEF Congress Centre. The meeting provided an opportunity to discuss ongoing engagement and future collaboration between Sri Lanka and the ADB.

In addition, the Prime Minister held discussions with Mr. Hassan El Houry, Chairman of Menzies Aviation, where opportunities for collaboration in aviation services and connectivity were explored.

The Prime Minister also participated in a high-level dialogue at the Global Tourism Forum held at the Euronews Hub, Piz Buin, Davos, as part of the World Economic Forum engagements.

Dr. Anil Jayantha, Minister of Labour, and the Deputy Minister of Finance were also present at these meetings.

[Prime Minister’s Media Division]

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Plans for 2026 on the journey towards a digital economy Under President’s review

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A discussion to review the progress of projects implemented under the Ministry of Digital Economy in 2025 and to examine new projects planned to be implemented under the 2026 budgetary allocations was held on Monday (19) morning  at the Presidential Secretariat under the patronage of the Minister of Digital Economy, President Anura Kumara Dissanayake.

Special attention was paid to the plans and progress of programmes to promote a cashless economy.

Accordingly, an extensive discussion was held on the progress of projects planned by the Government to promote a cashless economy in Sri Lanka, including the digitalisation of government institutions, promotion of QR transactions, establishment of a Cloud infrastructure centre, a national programme to provide high-speed broadband facilities, provision of single-window facilities, the digital identity card project and the project to digitalise payment of traffic spot fines.

Noting that much of the economic activity of rural communities remains in the informal sector, the President emphasised the need to formally document these activities and stressed that this is essential when formulating future economic and development plans.

The performance, progress and future plans of institutions under the Ministry of Digital Economy, including Sri Lanka CERT, the Data Protection Authority and the Telecommunications Regulatory Commission (TRC), were also reviewed.

The current status and new recruitments of the GovTech institution, established to implement the Government’s digitalisation programme, were also discussed.

Deputy Minister of Digital Economy, Eranga Weeraratne, Secretary to the President, Dr. Nandika Sanath Kumanayake, Senior Presidential Adviser on Digital Economy, Dr. Hans Wijayasuriya, Senior Additional Secretary to the President, Roshan Gamage, Secretary to the Ministry of Digital Economy, Varuna Sri Dhanapala, senior officials of the Ministry and heads of institutions under the Ministry also participated in the discussion.

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Power sector reforms: CEB trade unions threaten strike

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A simmering confrontation between the government and the powerful Ceylon Electricity Board (CEB) trade unions intensified yesterday, with the latter signalling continued industrial action, even as authorities moved decisively to prevent any disruption to electricity supply.

The dispute centres on the government’s determination to restructure and unbundle the CEB under amendments to the Electricity Act, a reform drive officials describe as unavoidable to curb losses, strengthen governance and stabilise the national power sector. This has also been a long-standing demand of international donors, particularly the International Monetary Fund and the World Bank.

Some 24 CEB unions, including powerful engineers’ and workers’ organisations, have rejected the move, warning that the proposed restructuring could weaken institutional coordination, undermine job security and eventually place additional pressure on consumers.

Union representatives said work-to-rule campaigns and other limited forms of industrial action would continue, despite electricity services being declared an essential service — a legal measure that effectively curtails full-scale strike action.

“These reforms are being imposed without proper consultation. Decisions taken in haste could have serious consequences for grid stability and public confidence,” a senior union official told The Island.

The government, however, has adopted a firm posture, cancelling all categories of leave for CEB staff and directing management to ensure uninterrupted operations across generation, transmission and distribution.

A senior official at the Power and Energy Ministry said the administration would not allow labour unrest to jeopardise electricity supply, stressing that energy security was central to economic recovery.

“Electricity is a critical public service. Any attempt to disrupt supply will be dealt with firmly,” the official said.

Engineers’ unions have separately cautioned that restructuring without a clearly articulated technical and regulatory framework could compromise long-term planning and system reliability, though they have stopped short of calling for an outright shutdown.

Despite ongoing discussions between union leaders, CEB management and government representatives, there is no indication of an early resolution, raising the prospect of a prolonged standoff at one of the country’s most strategically important state institutions.

The dispute unfolds amid Sri Lanka’s IMF-backed reform programme, under which state-owned enterprises — particularly in the energy sector — are under increasing pressure to reduce losses and ease the burden on public finances.

Analysts warn that sustained unrest at the CEB could complicate reform timelines and dent investor confidence, even as the government seeks to signal policy resolve.

A retired CEB top official said: “For now, while major strike action remains legally constrained, the confrontation has once again placed the power sector at the centre of national debate, with consumers and businesses watching closely for any fallout.”

By Ifham Nizam ✍️

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