X-Press Feeders raises alarm over $250 million compensation order in Sri Lanka
X-Press Feeders, one of the world’s largest independent feeder carriers, has expressed serious concerns about a $250 million compensation order issued by the Supreme Court of Sri Lanka, warning that it is unable to comply with the directive while continuing to honor existing financial commitments. The company, together with its insurer, has already contributed more than $170 million towards environmental cleanup, wreck removal, and compensation payments linked to the aftermath of the X-Press Pearl incident off the coast of Colombo in 2021.
Court order and financial strain
On 23 September 2025, Sri Lanka’s Supreme Court set a deadline for the company to make an additional $250 million payment in connection with the disaster. X-Press Feeders has said that this figure far exceeds what it can realistically provide, noting that it is still in the process of constructive engagement with the Sri Lankan government to reach a fair and balanced resolution.
In a statement, the company explained that the financial support already provided had been carried out in cooperation with the Sri Lankan authorities and in accordance with established international protocols for maritime claims. Despite this, it has been unable to secure clarity on how the newly imposed order will align with previous settlements facilitated through recognized channels such as the International Tanker Owners Pollution Federation (ITOPF).
Progress already made
Following the X-Press Pearl fire and subsequent sinking in June 2021, Sri Lanka’s government lodged multiple claims relating to environmental damage, fisheries loss, and coastal livelihoods. X-Press Feeders says that all claims processed and validated by ITOPF—an internationally recognized authority on oil and chemical spill compensation—have been settled in full. These payments covered a wide range of activities, from direct compensation to communities to the deployment of international experts tasked with shoreline and marine cleanup operations.
The company highlighted that over $170 million had already been disbursed through this process, reflecting one of the largest-ever compensation outflows for a maritime incident in South Asia. However, the fresh demand for an additional $250 million, the company argues, risks undermining both legal certainty and the spirit of collaboration that has thus far defined its dealings with the Sri Lankan government.
Delays in disbursement raise frustration
X-Press Feeders has also expressed frustration over reports emerging from Sri Lanka’s parliament that funds already provided have not yet reached many of the affected communities. “We are deeply disappointed to learn from local reports of Sri Lankan parliament proceedings that compensation payments have not yet reached many affected communities due to delays within Sri Lanka,” the company said.
This admission has fueled tensions, as fishing and coastal communities continue to voice grievances over the slow pace of financial relief more than four years after the incident. Industry observers suggest that the mismatch between funds provided by the company and the actual distribution on the ground is a growing political issue within Sri Lanka, complicating the legal process further.
Humanitarian concerns
Alongside financial matters, X-Press Feeders raised strong concerns about the continued detention of the vessel’s Master, who has been unable to return home due to a court-imposed travel ban. The company described the situation as “deeply concerning,” pointing out that the Master has been confined to Sri Lanka for over four years, separated from his family, and facing “significant and prolonged distress.”
“Our master and our local agents have cooperated fully with all inquiries and investigations. We now seek their fair and humane treatment,” the company stated. Shipping industry associations have echoed these concerns, arguing that prolonged detentions set a worrying precedent for seafarer welfare, particularly in complex maritime accidents where liability is shared across multiple actors.
Broader implications
The case has sparked debate within global shipping and insurance circles over the consistency of international compensation frameworks. Normally, maritime environmental incidents are handled through well-defined conventions, such as the International Maritime Organization’s liability regimes. While Sri Lanka is entitled to seek compensation, industry figures warn that excessively large unilateral demands could undermine confidence in international arbitration processes and deter vessel operators from calling at certain ports.
