Supreme Court orders $ 1 b compensation for X-Press Pearl disaster

Friday, 25 July 2025 05:59 - - {{hitsCtrl.values.hits}}

Orders funds be directed to Treasury Secretary as part of environmental damage recovery
Directs establishment of MV X-Press Pearl Compensation Commission chaired by retired Justice Gamini Amarasekera
SC holds ex-State Minister Nalaka Godahewa accountable for regulatory failures, violation of citizens’ Fundamental Rights

In a landmark judgment, Sri Lanka’s Supreme Court (SC) has ordered non-State parties involved in the 2021 MV X-Press Pearl maritime disaster to pay an initial compensation of $ 1 billion within a year.

The ruling, aimed at addressing one of the country’s worst environmental catastrophes, also mandates the formation of a special Compensation Commission and holds a former State Minister accountable for regulatory failures.

The Court further directed that the payment be made to the Treasury Secretary.

The five-judge bench of the SC, comprising Chief Justice Murdu Fernando, Justice Yasantha Kodagoda, Justice Shiran Gooneratne, Justice Achala Wengappuli, and Justice Priyantha Fernando, also ordered the establishment of the MV X-Press Pearl Compensation Commission. The Commission is to be chaired by retired SC Justice Gamini Amarasekera.

Meanwhile, the SC ruled that former State Minister for Urban Development and Coast Conservation Nalaka Godahewa was responsible for failing to implement adequate supervisory measures, thereby violating the Fundamental Rights of citizens.