X-Press Pearl disaster: CEJ warns SL may lose out on $ 10 b in compensation 

• Says SL has just 43 days to file a claim in local courts and not taking action within the time frame would be a failure of the AG and Cabinet 
• Reveals SL has decided to pursue legal action in Singapore instead of SL and borrowed $ 4.5 m for the purpose 
• Claims research conducted has found heavy pollution in the marine environment around the X-press Pearl shipwreck and heavy metals in fish far exceeding approved levels for human consumption

The Centre for Environmental Justice (CEJ) yesterday warned Sri Lanka may lose out on claiming compensation for the X-Press Pearl Marine Disaster under local law as legally the claim must be filed within two years of the accident, i.e before 29 May 2023. 

The CEJ said with a mere 43 days to file the claim if immediate action is not taken within the relevant time frame Sri Lanka might lose an estimated $ 10 billion in compensation. “That would be a catastrophic failure on the part of the Attorney General’s Department and the Cabinet,” the organisation said in a release. The CEJ also said Sri Lankan authorities have decided to file legal action in Singapore and not in Sri Lanka despite existing legal precedents in the country being sufficient to receive compensation. The organisation also alleged that Sri Lanka has borrowed $ 4.5 million to fund this endeavour and accused the Attorney General’s Department of allowing the ship’s insurer to bargain the compensation amount. 

CEJ said the decisions of the committees appointed by the Marine Environment Protection Authority (MEPA) and by the Ministry of Justice to estimate harm are being concealed from the public. The organisation said on inquiry the Department of Fisheries and Aquatic Resources revealed that only $ 4.5 million in three instalments of $ 1 million, $ 1.75 million and Rs. 911 million has been paid when $ 71 million has been requested to compensate fishermen who were affected. 

“Despite the dollar crisis in the country, it was learnt that a decision had been made to receive the compensation amount in the last phase in rupees,” CEJ said.  “Meanwhile, it has been learnt that the P&l insurance company did not provide any compensation after January 2022, and the reason for this is that the Government of Sri Lanka has declared that it will not provide proper facilities to remove the ship from Sri Lankan waters,” it added. 

Meanwhile, research by CEJ has also found heavy pollution in the marine environment around the X-press Pearl shipwreck. The CEJ said the research was conducted in collaboration with Prof. M.M. Pathmalal of the Animal Science Department of the University of Sri Jayewardenepura from October to December 2021, based on water and animal samples in 11 locations. CEJ said a high amount of nitrate was detected in the surrounding sea and harmful biotoxins were found around Dikowita and Sarakkuwa. 

 “Oil and grease were also found around the ship, along with heavy metals such as lead, zinc, copper, and nickel found in these samples. Those heavy metals were found in sea snails, shrimps, sardines, and herrings exceeding the level approved for human consumption,” the release read. The CEJ said high amounts of lead were found in shellfish, shrimp, sardines, and herring. “Even in small amounts, this chemical is harmful. 

The environmental pollution caused by the ship sinking has adverse consequences for the neighbouring fishing communities through their fish consumption,” the organisation warned.