The ruling follows a lawsuit spearheaded by a coalition of fishermen and rights groups who sought justice for the environmental damage and the collapse of the fishing industry in the aftermath of the disaster.
Fishermen across Sri Lanka have hailed a landmark ruling by the country’s top court, which has ordered US$1 billion in compensation for the devastating environmental damage caused by the sinking of the MV X-Press Pearl, a Singapore-flagged cargo ship that caught fire and sank off the western coast four years ago.
The Supreme Court decision, issued on July 25, holds the owners, managers, and agents of the vessel financially accountable for what has been described as Sri Lanka’s worst maritime ecological disaster. The court also ordered the creation of two bodies – a Compensation Commission and a Marine Restoration Committee – to oversee the fair distribution of funds and begin the long process of environmental rehabilitation.
The ruling follows a lawsuit spearheaded by a coalition of fishermen and rights groups who sought justice for the environmental damage and the collapse of the fishing industry in the aftermath of the disaster.
The X-Press Pearl, carrying hazardous chemicals including 25 tons of nitric acid, caught fire on May 20, 2021. The fire raged for seven days before the vessel was towed into deeper waters, where it sank on June 2. In its wake, it released toxic chemicals and trillions of plastic pellets that blanketed beaches and decimated marine life.
“After the disaster, we saw hundreds of dead turtles, dolphins, whales, thousands of fish, and tons of plastic pellets and trash littering the country’s beaches,” said Vincent Sebastian, a fisherman from the coastal town of Negombo. “But what we saw was only a part of the devastation. Millions of invisible marine organisms must have died. Innocent fishermen are suffering for something they had no part in.”
Sebastian said fishing yields in the region have plummeted since the incident, making it difficult for families like his to make ends meet. “We are unable to feed our families properly or invest in our children’s future. The sea, our only source of income, has become lifeless.”
Traditional methods
An estimated 250,000 Sri Lankans depend on fishing, with many practicing traditional methods passed down through generations. The disaster disrupted not only their income but also their connection to the ocean.
Sarath Iddamalgoda, a rights advocate, helped file the case on behalf of the fishermen. He emphasized that the disaster’s impact has been both environmental and social.
“The loss of livelihood has deeply affected these communities,” Iddamalgoda said. “Political interference in distributing relief from the fisheries department has made things worse, prompting over 2,000 fishermen to submit a petition demanding fair treatment.”
He also stressed the lack of a comprehensive assessment of the damage. “There was no proper study done. Without one, how can we truly understand what has been lost or offer meaningful compensation?” he asked.
In the aftermath of the sinking, the government reportedly received 3 billion rupees (around US$10 million) from the ship’s insurer. But many fishermen claim the relief was distributed arbitrarily.
“One boat attendant received just 17,500 rupees – about US$59 – over two years,” said Sebastian. “It was an insult to what we’ve endured.”
Iddamalgoda called for a full investigation into how relief funds have been managed and demanded that compensation efforts consider long-term impacts. “We’re not only talking about this generation, but the next as well. The damage is lasting.”
Transparency International Sri Lanka, which was also a petitioner in the case, called the court’s decision “historic,” praising it as a critical step toward corporate accountability and environmental justice.
With the court’s directive in place, affected communities hope this marks the beginning of meaningful redress – and a chance to restore both their lives and the ocean they depend on.
