TISL welcomes SC ruling on X-Press Pearl

• Observes judgement as victory for transparency and accountability

Transparency International Sri Lanka (TISL) yesterday welcomed the Supreme Court’s landmark decision to hold both State officials and corporate actors accountable for their roles in one of the worst environmental disasters in the country’s history. 

Issuing a statement, TISL noted that the judgment underscores the critical need for transparency, institutional and corporate accountability, as well as stronger enforcement of legal obligations, to prevent future environmental harm, governance failures, and corruption. 

TISL filed the intervention petition to intervene in case no. SC/FR 168/2021, filed by the Centre for Environmental Justice, seeking fair compensation for the victims of the X-Press Pearl disaster. TISL intervened in the public interest, citing grave lapses in the discharge of public duties by relevant authorities in the lead-up to and handling of the disaster. TISL raised critical questions on accountability for the systemic governance failures that enabled the scale of the disaster and hindered timely and transparent response and compensation.

The Supreme Court held the Master, Operators, and local Agent of MV X-Press Pearl and the X-Press Pearl Group responsible for causing a preventable environmental disaster. The Court held the then State Minister for Urban Development, the Attorney General, and the Marine Environment Protection Authority (MEPA) and its Chairperson accountable for the violation of Article 12(1) of the Constitution.

Declarations of Fundamental Rights violations:

• The former State Minister for Urban Development violated Article 12(1) by failing to constitute the Marine Environment Council and to supervise MEPA, resulting in an unsupervised response to the X-Press Pearl disaster.
• The MEPA infringed Article 12(1) by failing to respond effectively to the incident and failing to comply with its statutory obligations under the Marine Pollution Prevention Act.
• The Chairperson of MEPA infringed Article 12(1) by failing to discharge her statutory responsibilities and respond effectively to the X-Press Pearl incident.
• The Attorney General infringed Article 12(1) by failing to indict the Owner and Operators of MV X-Press Pearl under Section 26(a) of the Marine Pollution Prevention Act.
• The Attorney General also infringed Article 12(1) by unreasonably, irrationally, and arbitrarily instituting civil action in Singapore, rather than pursuing proceedings in the High Court of Sri Lanka exercising admiralty jurisdiction—a decision deemed not in the national interest.

 

Significant orders made:

• The X-Press Pearl group must pay $ 1 billion in initial compensation to the Treasury within one year, with the first instalment due by 23 September 2025. Further compensation payments may be ordered by the Court in due course.
• The local Agent Sea Consortium Lanka Ltd., must submit an affidavit naming all directors and key officers involved in matters related to the X-Press Pearl as of 2 June 2021.
• The Director General of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) must conduct a fresh bribery and corruption investigation, coordinate with intelligence agencies, and inter alia, look into the speeches made in Parliament pertaining to the disaster.
• The Court established a Compensation Commission to oversee reparations.
• The Court established a Marine and Coastal Restoration Committee to lead environmental recovery.
• The Attorney General must complete investigations, pursue prosecutions, report to the Court every three months, and lead legislative reform to ensure Sri Lankan maritime pollution laws are aligned with international standards.

 

The case was heard before a five-judge bench comprised of Chief Justice Murdu Fernando, PC, Yasantha Kodagoda, PC, A.L. Shiran Gooneratne, Achala Wengappuli, and K. Priyantha Fernando. 

Senior Counsel Senany Dayaratne, with Nishadi Wickremasinghe, Maheshika Bandara, Adithya Karalliadee, and Janani Abeywickrema instructed by Thushari Jayawardena, appeared for TISL. 

TISL remains steadfast in its commitment to shining a light on issues of transparency and accountability and will continue to play an active role in ensuring that this significant decision of the Supreme Court is effectively implemented.