MT New Diamond tanker owners agree to pay interim bill

Friday, 25 September 2020 00:02 -     - {{hitsCtrl.values.hits}}

  • Payment for first interim claim expected to be made within a week
  • AG files second interim claim of Rs. 100 m 
  • MEPA-led expert panel interim report submitted to AG, says MT New Diamond caused marine pollution
  • AG to file claim on damages to marine environment following complete report by expert panel
  • MEPA says incident was learning experience to be better prepared for future
  • Navy observes oil patches have disintegrated  
  • AG instructs tanker to be towed beyond 200 nautical miles under Navy escort after local procedures complete

By Asiri Fernando


The owners of the stricken crude oil super tanker MT New Diamond have agreed to settle an interim claim worth Rs. 340 million submitted by Sri Lankan stakeholders. 

The owners had informed Attorney General (AG) Dappula De Livera that they agree to settle the interim claim in full yesterday, an official said.  

“The AG has filed another claim for cost incurred from 13 September to 23 September worth Rs. 100 million to the owners of the MT New Diamond,” Attorney General’s Coordinating Secretary State Counsel Nishara Jayaratne said.  Thereby, the total claims filed by the Sri Lankan Government to the owners of the vessel up to date is Rs. 440 million, Jayaratne pointed out.  The Sri Lankan stakeholders to the interim claim include Sri Lanka Ports Authority (SLPA), Sri Lanka Navy, Sri Lanka Air Force, Sri Lanka Coast Guard, Marine Environmental Protection Agency (MEPA) and Colombo Dockyard PLC.  

A senior Government official told the Daily FT that the payment for the first interim claim is expected to be made within a week. 

An interim report to establish if the incident caused any marine pollution, compiled by an expert panel, has been handed over to the AG yesterday, MEPA Chairperson Dharshani Lahandapura told Daily FT.  The report will also be forwarded to the owners of the vessel.  

“The Attorney General will submit a claim for damages to the Sri Lankan marine ecosystem to the owners of the tanker and related entities, once the complete report is presented by the expert panel and a cost estimate is drawn up by relevant authorities,” Jayaratne added.  

The report establishes that MT New Diamond has caused sea pollution, MEPA General Manager Dr. Terney Kumara said. 

The expert panel include specialists from MEPA, National Aquatic Resources Research and Development Agency (NARA), Ruhuna and Sri Jayawardenapura Universities.  “The report will be crucial evidence for legal action,” Dr. Kumara said, pointing out that the tanker fire incident was a learning experience, and opined that MEPA and other stakeholders will be better prepared to respond to a major marine pollution incident in the future. The report comes after the Colombo Magistrates Court last week issued notice on the Captain of the MT New Diamond Captain Sterio Ilias to appear before court next Monday (28 September).  

“The AG has instructed the ‘MT New Diamond’ to be towed beyond 200 nautical miles (beyond the Island’s Exclusive Economic Zone) under Sri Lanka Navy escort, after all local proceedings are completed,” Jayaratne added.   

Divers from the Sri Lanka Navy with assistance from the Indian Coast Guard sealed off two sea water inlets to the vessel, preventing the troubled tanker from leaking bunker oil and lubricants earlier this month.  According to the Navy, both patches of oil which were detected leaking from the MT New Diamond have disintegrated, following the application of oil dispersant chemicals by an Indian Coast Guard aircraft.  As of last evening, the MT New Diamond was being held 66 nautical miles from the coast, with the Sri Lanka Navy Patrol Vessel ‘SLNS Sindurala’ on site with four tugs — ‘TTTOne’, ‘Posh Commander’, Waterlily and Waruna. The tug ‘Boca Expedition’ which was on site has moved to Trincomalee Port for resupply, and is expected to re-join the other tugs in the coming days.  

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