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

Published

4 years ago

2021/06/6

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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Breakaway JVP faction decries Indo-Lanka MoUs as betrayal

Published

8 hours ago

2025/04/8

Sahan Weerasooriya

Pubudu

… alleges Kanchana’s Electricity Act exploited to facilitate ‘deal’ with India

The Frontline Socialist Party (FSP) has alleged that President Anura Kumara Dissanayake entered into seven MoUs/Agreements with India without consulting Parliament or the Cabinet of Ministers.

Accusing President Anura Kumara Dissanayake, who is the leader of the Janatha Vimukthi Peramuna (JVP), as well as the National People’s Power (NPP), of undermining Sri Lanka’s sovereignty, the breakaway JVP faction pointed out the signing of seven MoUs/Agreements had coincided with the 54th anniversary of the JVP’s first insurrection.

The top FSP spokesman and their Education Secretary, Pubudu Jayagoda, told a press conference, at their Nugegoda party office, that the JVP had completely betrayed those who sacrificed their lives during the 1971 and 1987-1990 insurrections. Having completely changed its policy towards India, the JVP was now down on its knees before India, Jayagoda said.

The dissident JVPer emphasised that such vital MoUs/Agreements couldn’t be finalised without proper consultations. Declaring that the MoUs/Agreements hadn’t been released yet, Jayagoda said that the FSP, in terms of the Right to Information Act, sought the copies of them as the public couldn’t be deprived of their right to know.

The section, now calling themselves FSP, split from the JVP in early 2012 after major differences among the top leadership over the direction of the party. Anura Kumara Dissanayake succeeded Somawansa Amarasinghe as the JVP leader in Dec. 2014.

Referring to the MoU, in respect of the implementation of HVDC interconnection for import/export of power, Jayagoda said that the NPP took advantage of the new Electricity Act that was enforced by the Wickremesinghe-Rajapaksa government in late June last year to pave the way for a deal with India. The JVP-led NPP that moved court against the then Power Minister Kanchana Wijesekera’s Bill, and voted against the Bill at the second reading, exploited the same to its advantage, Jayagoda charged.

The Sri Lanka Electricity Bill repealed the 1969 Ceylon Electricity Board (CEB) Act and subsequent laws regarding the electricity industry.

Comparing the MoU, signed in the presence of President Dissanayake and Premier Narendra Modi, Jayagoda said that both Nepal and Bangladesh had been trapped in similar agreements they signed earlier.

Jayagoda alleged that Nepal was in such a pathetic situation even if they could meet electricity requirement through hydro-power generation, the agreement with India compelled them to obtain power from India.

Jayagoda pointed out that the government now boasted of a proposed new120 MW solar power plant at Sampur to be implemented in two stages after having crippled domestic solar power generation capacity. The former JVPer said that the NPP government was bending backwards to appease India and pursuing an agenda inimical to Sri Lanka.

Jayagoda dealt with the MoU on cooperation in the field of sharing successful digital solutions implemented at population scale for digital transformation. The FSP spokesman said that the Indian-funded project to issue digital NIC would be disastrous as it would enable India to gather information.

Commenting on a MoU that covered the health sector, Jayagoda alleged that the government had agreed to share authority exercised by the National Medicine Regulatory Authority (NMRA) with India.

Jayagoda said that the MoU on defence cooperation undermined the country’s vital security interests and jeopardised relations with other countries.

The FSP said that political parties, represented in Parliament, were largely silent and seemed to be reluctant at least to express their views on the betrayal of the country.

By Shamindra Ferdinando

News

Adani’s Colombo Terminal commences operations

Published

8 hours ago

2025/04/8

Sahan Weerasooriya

A bulk carrier at the newly operational Colombo West terminal(pic courtesy Adani group)

Adani Ports and Special Economic Zone Ltd. (APSEZ), India’s largest integrated transport utility, has announced the commencement of operations at the Colombo West International Terminal (CWIT), located at the Port of Colombo, the company said in a statement issued simultaneously in Ahmedabad and Colombo yesterday (07)

Developed under a landmark public–private partnership, CWIT is operated by a consortium comprising India’s largest port operator Adani Ports & SEZ Ltd., leading Sri Lankan conglomerate John Keells Holdings PLC, and the Sri Lanka Ports Authority, under a 35-year Build, Operate, and Transfer (BOT) agreement.

The CWIT project represents a significant investment of USD 800 million and features a 1,400-metre long quay and 20-metre depth, enabling the terminal to handle approximately 3.2 million Twenty-foot Equivalent Units (TEUs) annually. It is the first deep-water terminal in Colombo to be fully automated, designed to enhance cargo handling capabilities, improve vessel turnaround times and elevate the port’s status as a key transshipment hub in South Asia.

Construction began in early 2022 and has since achieved rapid progress. With the installation of cutting-edge infrastructure now nearing completion, CWIT is poised to set new benchmarks in operational efficiency and reliability in regional maritime logistics.

“The commencement of operations at CWIT marks a momentous milestone in regional cooperation between India and Sri Lanka,” said Chairman of the Adani Group Gautam Adani. “Not only does this terminal represent the future of trade in the Indian Ocean but its opening is also a proud moment for Sri Lanka, placing it firmly on the global maritime map. The CWIT project will create thousands of direct and indirect jobs locally and unlock immense economic value for the island nation. It also stands as a shining example of the deep-rooted friendship and growing strategic ties between the two neighbours, and of what can be achieved through visionary public–private partnerships. Delivering this world-class facility in record time also reflects the Adani Group’s proven ability to efficiently execute large-scale critical infrastructure projects anywhere in the world.”

“We are proud to see the progress in the development of the West Container Terminal, a project that strengthens Sri Lanka’s position as a regional maritime hub,” said Chairperson, John Keells Group Krishan Balendra. “This project is one of the John Keells Group’s largest investments and is among the most significant private-sector investments in Sri Lanka. Together with the Sri Lanka Ports Authority and the Adani Group, we will elevate Colombo’s status as a leading transshipment hub. We are confident that the project will enhance global trade and connectivity in the region”, he said.

News

SLIC Life reports robust performance with Rs. 30.7 Billion PBT in 2024

Published

8 hours ago

2025/04/8

Sahan Weerasooriya

Nusith Kumaratunga (L) / Chandana L. Aluthgama (R)

Sri Lanka Insurance Corporation Life Limited (SLICLL) has concluded the year 2024 with outstanding financial performance, achieving a remarkable profit before taxation of Rs. 30.7 billion. The text of SLIC statement: “The company recorded a robust Gross Written Premium (GWP) of Rs. 26.3 billion, reflecting an impressive 25% growth. Remarkably, as of December 31, 2024, Sri Lanka Insurance Life marked a historic milestone with a New Business volume of Rs. 5.3 billion, recording a 48% growth, the highest in the company’s history.

Demonstrating its unwavering commitment to policyholders, Sri Lanka Insurance Life disbursed Rs. 13.7 billion in maturity settlements and claim payments in 2024, these figures reaffirm the company’s financial strength and dedication to fulfilling its obligations. Further cementing its position as a market leader, SLICLL continued to expand its asset base to an impressive Rs. 237 billion and grew its Life Fund to Rs. 213.2 billion. These achievements were realised amidst organizational transformations and challenging economic conditions. Additionally, the company recorded 319 MDRT qualifiers, the highest ever for SLIC Life.

Highlighting its prudent investment strategies and unwavering commitment to policyholders, Sri Lanka Insurance Life declared the largest Life Insurance bonus in the industry for 2023, amounting to Rs. 11.2 billion. Over the past two decades, the company has consistently delivered industry-leading bonus payouts, with cumulative declarations exceeding Rs. 104 billion. Continuing this legacy, Sri Lanka Insurance Life is set to declare its highest ever bonus for 2024, with official communication to be released in the near future.

Group Chief Executive Officer of Sri Lanka Insurance, Mr. Chandana L. Aluthgama, stated, “Our exceptional financial performance is a testament to the dedication and resilience of our team, who have navigated challenges with unwavering commitment. Despite economic fluctuations and internal transformations, our strategic focus has reinforced our market leadership. As we step into the future, we remain committed to innovation, customer trust, and industry leadership.”

Chairman of Sri Lanka Insurance, Mr. Nusith Kumaratunga, emphasized, “Sri Lanka Insurance Life has proven its strength and stability, delivering sustainable growth while reinforcing its role in the nation’s economic progress. Our vision extends beyond business success, we aim to contribute to national development by strengthening the economy and reducing dependency of the people on state support.”

Beyond financial success, Sri Lanka Insurance Life continued to earn industry recognition in 2024. The company was named ‘The Most Loved Life Insurance Brand’ by LMD for the seventh consecutive year and was ranked among the ‘Top 100 Most Valuable Brands’ in Sri Lanka by LMD Brand Finance. Additionally, SLIC Life secured top honors at the ‘Best Management Practices Company Awards 2024,’ ranking among the top ten companies and winning the ‘Insurance – Public Sector Company’ category.

Committed to international standards and operational excellence, Sri Lanka Insurance Life maintains ISO 9001:2015, ISO/IEC 27001:2013, and ISO 14064-1:2018 certifications. The company also continues its social impact initiatives, including the free Life Insurance cover gifted to parents of newborns on World Children’s Day for the third consecutive year, supported 1100 families in flood affected areas, providing emergency assistance to pilgrims traveling to Anuradhapura for Poson Poya and the awarding of 370 Suba Pathum scholarships to outstanding students in national examinations.

Looking ahead, Sri Lanka Insurance Life remains focused on driving innovation, enhancing customer confidence, and making meaningful contributions to society. With a solid foundation and a clear vision, the company is poised to maintain its legacy of excellence and leadership in the insurance industry.