Supreme Court orders USD 1 Billion compensation for MV X-Press Pearl disaster

The Supreme Court of Sri Lanka has ordered the shipping company responsible for the MV X-Press Pearl to pay USD 1 billion in compensation to the Sri Lankan government for the environmental and economic damage caused by the ship’s fire and sinking off the western coast in 2021.

The court found that the failure to prevent the disaster violated fundamental human rights. The judgment was delivered by a five-member bench comprising Chief Justice Murdu Fernando, and Justices Yasantha Kodagoda, Shiran Gunaratne, Achala Wengappuli, and Priyantha Fernando.

The compensation must be paid to the Secretary to the Treasury. The first installment is due by September 23, 2025, and the full amount must be paid within one year from the date of the ruling.

This decision follows a series of fundamental rights petitions filed by His Eminence Cardinal Malcolm Ranjith and members of the fishing community who suffered severe economic and livelihood losses due to the environmental destruction.

The court also ruled that former State Minister of Environment Nalaka Godahewa and the Marine Environment Protection Authority (MEPA) violated fundamental rights by failing to act to prevent the disaster.

The named respondents in the case include the then Minister of Environment, Minister of Fisheries, Minister of Ports, the Chairman of the Ports Authority, the Secretary of the Ministry of Environment, the local shipping agent Sea Consortium Lanka Pvt Ltd, the Marine Pollution Prevention Authority, the Central Environmental Authority, and the Attorney General, among others.

The ruling is considered one of the most significant environmental judgments in Sri Lanka’s legal history.