Supreme Court Orders $1 Billion Compensation in X-Press Pearl Disaster: 7 Key Rulings

In a historic judgment, Sri Lanka’s Supreme Court has delivered a powerful verdict on the 2021 MV X-Press Pearl maritime disaster, holding both the vessel’s operators and state authorities accountable for the worst marine pollution event in the Indian Ocean’s history.

1. $1 Billion Compensation Ordered

The court ordered the vessel’s owners and operators to pay USD 1 billion for the immense environmental and economic damage caused by the fire and sinking of the ship off Sri Lanka’s coast.

2. Declared the Worst Marine Disaster in the Indian Ocean

The court officially recognized the incident as the most severe marine chemical disaster in the region, citing the spread of over 70 billion plastic nurdles and toxic substances across Sri Lanka’s coastal ecosystems.

3. Violation of Citizens’ Fundamental Rights

State authorities’ failure to act swiftly and effectively was deemed a violation of fundamental rights under Articles 12(1) and 14(1)(g), affecting thousands of citizens, especially coastal communities dependent on fishing.

4. Government Negligence Highlighted

The Marine Environment Protection Authority (MEPA), Harbour Master, and several high-ranking officials, including then State Minister Nalaka Godahewa, were identified for negligence and dereliction of duty.

5. Polluter Pays Principle Upheld

In a landmark application of environmental law, the Court upheld the “polluter pays” principle, making the vessel’s operators, owners, and agents fully liable for ecological and economic losses.

6. Compensation Commission to be Appointed

A special commission will be set up to manage the distribution of the $1 billion fund, prioritizing affected fishermen and long-term marine restoration efforts.

7. Urgent Call for Environmental Reforms

The Court urged immediate legal and institutional reforms to bolster marine environmental protections, align with global safety conventions, and establish rapid disaster response protocols.

This verdict marks a significant moment in Sri Lanka’s environmental justice journey and sets a precedent for future maritime accountability.