Resounding Victory for Sri Lanka

Last week, Sri Lanka’s Supreme Court issued a landmark ruling, ordering a Singaporean shipping company and related parties to pay US$1 billion initial compensation for environmental damage.

In late May 2021, the X-Press Pearl cargo ship caught fire off the coast of Sri Lanka. Twelve days later, it sank, causing one of the worst ever maritime disasters. More than 1,680 metric tons of plastic pellets, also known as nurdles, spilled into Sri Lanka’s turquoise waters.

“It caused unprecedented devastation to the marine environment of Sri Lanka resulting in loss, damage, harm, and injury to the marine environment – the unparalleled treasure trove of marine ecosystems, to marine life of flora and fauna, and to the coral reefs,” the judgment stated.

The Centre for Environmental Justice (CEJ) and several others filed the case, seeking clean-up efforts and compensation for fishing communities. CEJ called on the ELAW network for scientific support, examples of damages sought in other marine disasters, and more.

This landmark ruling will send ripples through the shipping industry. The first installment of $250 million was ordered to be paid by September 23, 2025. A further $500 million should be paid within six months of the judgment, and the final $250 million is due within one year.

The Court upheld and applied the “Polluter Pays” principle asserting that it had become part of the law of Sri Lanka. Additionally, the Court established a Compensation Commission and a Restoration Committee of experts with mandates to continue assessing ongoing damage to the environment and ways to restore it. The Court indicated that it would remain possessed of the case and that further compensation may be assessed against the shipping company in the future.

Hemantha Withanage, CEJ Board Chair, says that this is a significant victory for CEJ and the people of Sri Lanka, as the polluters attempted to minimize liability through the Admiralty Court in the UK, despite the serious harm caused to local communities and the environment.

Congratulations to Dr. Ravindranath Dabare, who was counsel in the case, and the CEJ team for this inspired win that will reverberate around the globe!

Find more information here:

Mongabay, 29 July 2025
Sri Lanka Supreme Court orders $1 bn payment in X Press Pearl marine disaster

Seatrade Maritime News, 24 July 2025
Sri Lankan apex court orders $1bn compensation for X-Press Pearl disaster

Court Judgment, 24 July 2025
SC/FR 168, 176, 184 & 277/2021 (MV X-PRESS Pearl marine environmental pollution case)

Dr. Lalanath de Silva
Executive Director
Environmental Law Alliance Worldwide

Photo 2 Caption: Naval personnel remove debris from the X-Press Pearl cargo ship at Negombo Beach, Sri Lanka. PHOTO: Imago/Alamy