News
X-Press Pearl disaster: Owners refuse to abide by SC order
Singapore headquartered X-Press Feeders has refused to abide by Sri Lanka’s Supreme Court order made in July that the company pay an ‘initial’ US$1 billion in damages within a year to Sri Lankan authorities, with the first tranche of US$250 million to be paid by 23 September.
The SC also ordered the company “to make such other and further payments” in the future as the court may direct for causing the country’s worst environmental disaster.
The AFP quoted Chief Executive Shmuel Yoskovitz as having said that the damages wouldn’t be paid for causing Sri Lanka’s worst case of environmental pollution. The AFP, in an exclusive interview, further quoted him as having asserted that paying would have wide-ranging implications on global shipping and set a dangerous precedent.
The company operated the Singapore-registered container ship MV X-Press Pearl that sank off the Colombo Port, in June 2021, following a fire – believed to be caused by a nitric acid leak – that raged for nearly two weeks.
Its cargo included 81 containers of hazardous goods, including acids and lead ingots, and hundreds of tonnes of plastic pellets.
The ship was refused permission by ports in Qatar and India to offload the leaking nitric acid before it arrived in Sri Lankan waters without informing authorities here of the grave hazard it was carrying.
Tonnes of microplastic granules from the ship inundated an 80km stretch of beach along Sri Lanka’s western coast. Fishing was prohibited for months.
Despite its willful negligence in bringing in a dangerous vessel to our waters without any warning, X-Press Feeders Chief Executive Shmuel Yoskovitz has rejected the open-ended nature of the penalty.
“We are not paying because the whole base of maritime trade is based on the limitation of liability. This judgment undermines this limitation of liability.”
“Any payment towards the judgment could set a dangerous precedent for how maritime incidents will be resolved in the future,” he said.
Yoskovitz said the absence of limitations could lead to higher insurance premiums, which would be ultimately passed on to consumers.
The CEO again apologised for the incident, saying the company recognised the disaster and was trying to make amends.
He said X-Press Feeders had already spent US$170 million to remove the wreck, clean up the seabed and beaches, and compensate affected fishermen.
“We are not trying to hide… We are willing to pay more, but it has to be under certain marine conventions and an amount that is full and final, and then it can be settled, and we can move on,” he said.
“But to live under this hanging guillotine – it is simply impossible to operate like this.”
Meanwhile, the Supreme Court has scheduled a hearing on 25 September about the implementation of its decision.
One of the petitioners who sought compensation for the pollution has called for further research to determine the full extent of the damage to the island’s marine ecosystems.
It remains unclear how Sri Lanka’s Supreme Court could enforce its decision.
However, in its 361-page decision, in July, the court ordered police and the state prosecutor to initiate criminal proceedings for non-compliance if the parties were present in Sri Lanka.
Yoskovitz expressed concern over the ship’s Russian captain Vitaly Tyutkalo, who has been banned from leaving Sri Lanka for more than four years, as well as the company’s third-party agents there.
The firm had offered to pay a fine for the skipper’s release, but this was refused, according to Yoskovitz.
X-Press Feeders obtained an order from London’s Admiralty Court in July 2023, limiting its liability to a maximum of £19 million (S$32.9 million), but Sri Lanka has challenged that.
The Sri Lankan government also filed a lawsuit against the ship’s owners in the Singapore International Commercial Court. But that has been stayed pending the result of the case in London, with a pre-trial hearing expected in May 2026.
News
Energy Minister indicted on corruption charges ahead of no-faith motion against him
… first NPPer to face charges under Section 70 of Bribery Act
Colombo High Court has issued summons on Energy Minister Kumara Jayakody to appear in court today (27) to serve indictment in a corruption case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). Action has been taken under Section 70 of the Bribery Act. The losses suffered by the government have been estimated at Rs. 8,859,708.
National List (NL) MP Jayakody is the first NPP minister or politician at any level to be indicted for corruption. The NPP parliamentary group consists of 159 including 18 NL members.
The summons has been issued by High Court judge Rashantha Godawalage.
Although CIABOC previously in many instances arrested those who had been under investigation and produced them before Magistrate courts, Minister Jayakody has been directly summoned by the Colombo High Court.
The investigation into alleged corruption in procurement during the time Jayakody served the Ceylon Fertilizer Corporation (CFC) started after the change of government in 2015.
According to the CIABOC investigation, the alleged instance of corruption took place in early 2014 towards the tail end of Mahinda Rajapaksa’s second term. At that time Jayakody was CFC’s Procurement Manager, and the CIABOC dragged the investigation until its current leadership under overall speeding up of the cases recently completed the inquiry.
Parliament recently announced that the debate on no-faith motion moved against Minister Jayakody over alleged irregularities in the procurement of substandard coal for the country’s only coal-fired power station at Norochcholai.
SJB MP Mujibur Rahman said that the NPP, having campaigned on an anti-corruption platform during presidential and parliamentary polls in 2025 couldn’t under any circumstances shield minister Jayakody. The indictment of Jayakody over a corruption case that had happened in 2014 and the failure on his part to fulfill obligations as Energy Minister under the current dispensation couldn’t be considered separately, the Colombo District MP said.
The issue at hand is whether the NPP would try to protect Jayakody at the expense of the government, MP Rahman said. Once the NPPer is formally charged in a corruption case the government would find it extremely difficult to keep him in the cabinet, the former UNPer said.
SJB lawmaker S.M. Marrikar recently warned Minister Jayakody that he should be prepared to serve a jail term. The warning was issued at a media briefing that primarily dealt with the alleged irregularities in the procurement of coal and their decision to move a no-faith motion against the minister. Marrikar explained how the crisis coupled with the growing diesel shortage could compel the government to increase electricity tariffs by as much as 18 percent next week. MP Marikkar said that they were eagerly waiting to see who backs Jayakody at the expense of the government during the upcoming vote on the no-faith motion.
There had been a previous case of a sitting minister being charged under the Bribery Act in respect of corruption perpetrated as a government servant. MP Rahman said that they intended to intensify the ongoing campaign against the government on the strength of the unprecedented corruption case and the outcome of the no-faith motion. “Of course, they have the numbers to defeat our no-faith motion. But, in doing so, they end up with egg on their face. That is the reality,” Rahman said, adding that those responsible for waste, corruption and irregularities whichever political parties they represented shouldn’t expect special status.
MP Rahman alleged that the CIABOC granted special status to Minister Jayakody. All those who had been indicted previously were first called to the CIABOC, recorded their statements and then arrested, handcuffed and produced in court. The media was afforded the opportunity to cover their humiliation, MP Rahman said, but in this case the powers that be paved the way for the accused to receive indictments directly from the Colombo High Court.
“Let us see whether the Bar Association of Sri Lanka responds to this development,” MP Rahman said.
By Shamindra Ferdinando
News
Over 1000 complaints of misuse of QR quotas
The Ministry of Digital Economy says it has received more than 1,000 complaints of fraudulent activities involving the misuse of QR-based fuel quota system.
Ministry Secretary Waruna Sri Dhanapala said investigations had been launched in coordination with the Police, noting that over 150 complaints had already been referred for further action, leading to several arrests.
He added, however, that a number of complaints stemmed from instances where individuals had used others’ QR codes due to a lack of awareness.
Police are also examining security camera footage at fuel stations to identify suspects linked to such incidents, the Secretary said.
by Pradeep Prasanna Samarakoon
News
Fuel bowser operators demand 25% hike in haulage charges
The Lanka Petroleum Private Tanker Owners’ Association has called for a 25% increase in fuel transportation charges, citing rising operational costs following recent fuel price hikes.
Addressing a media briefing in Colombo on Wednesday (25), Co-Secretary Shantha Silva said the association has formally notified the government of its proposal, warning that failure to respond favourably could result in trade union action.
Association President A.M.H. Adhikari said that fuel distribution had continued without interruption despite mounting challenges, but recent price increases have placed a significant burden on tanker operators.
“Fuel prices have risen by Rs. 101 within this month alone, creating serious difficulties for those engaged in distribution, particularly in outstation deliveries,” he said.
Adhikari added that the association’s Executive Committee has unanimously decided to seek a 25% increase in transportation charges for long-distance distribution, with effect from the 21st, expressing hope that the government would respond positively to avoid further disruptions.
by Chaminda Silva
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