X-Press Feeders pauses payouts in X-Press Pearl case as it urges Sri Lanka for guarantees
- Boxship operator cites risk of dangerous precedent and demands alignment with global maritime law before complying with payment order
- X-Press Feeders said it has carefully considered court’s July 2025 ruling, which mandated an initial payment of $250m to be paid today
- Company ‘disappointed’ that compensation payments have not yet reached many affected communities due to delays within Sri Lanka
X-Press Feeders has raised strong concerns over the continued legal and personal consequences faced by its personnel
X-PRESS Feeders chief executive Shmuel Yoskovitz says the company is not willing to make more payments to the Sri Lanka government, as part of compensation for 2021’s X-Press Pearl disaster, until it is assured that compensation is aligned with international conventions.
The 2,700 teu X-Press Pearl (IMO: 9875343) experienced a fire in its cargo of containers off the coast of Colombo in May 2021, which spread and later caused the vessel’s sinking, leading to what has been described as one of the worst maritime environmental disasters in Sri Lanka’s history.
In a statement issued today, X-Press Feeders, along with its insurer, said it has “carefully considered” the court’s July 2025 ruling, which mandated an initial payment of $250m to be paid today, September 23, as part of an interim $1bn order.
“After review, we are unable to make payment at this stage while we continue to seek engagements with the relevant Sri Lankan authorities,” Yoskovitz said.
“While we respect the judicial process, the ruling leaves open the possibility of additional and potentially unlimited compensation.”
He expressed concerns over the open-ended nature of the compensation and its broader implications for global maritime liability.
“Any payment towards the judgment could set a dangerous precedent for how maritime incidents will be resolved in the future. It is vital that any compensation is substantiated, proportionate and consistent with international conventions.”
X-Press Feeders has emphasised that some $170m had already been paid toward wreck removal, environmental clean-up and approved compensation claims, in cooperation with the Sri Lankan government and international experts.
According to an X-Press Feeders statement, claims submitted by the Sri Lankan government and processed by the International Tanker Owners Pollution Federation have been settled.
However, the company expressed concern over reports from Sri Lankan parliamentary proceedings suggesting that many affected communities have yet to receive compensation due to domestic delays.
“We share the frustrations of those impacted,” noted the statement.
It added that the company remains open to providing additional direct support to community-based projects, particularly those benefiting fishermen and the marine environment.
X-Press Feeders also raised strong concerns over the continued legal and personal consequences faced by its personnel.
The master of X-Press Pearl, Russian national Vitaly Tyutkalo, remains under a court-imposed travel ban and has been unable to return home for over four years, a situation the company describes as causing “significant and prolonged distress” to him and his family.
In addition, local agents continue to face repeated investigations, arrests and court proceedings, despite having had no decision-making authority related to the incident.
“We seek fair treatment of the vessel’s master and local agents,” said Yoskovitz. “We remain open to direct dialogue with the relevant Sri Lankan authorities and hope to achieve an outcome that is evidence-based, fair, proportionate and consistent with international practice.”
Commenting on the continued detention of Tyutkalo, InterManager secretary-general Kuba Szymanski said: “We are very disappointed to see Captain Tyutkalo still being effectively detained in Sri Lanka.
“Despite the fact that the maritime industry has a robust legal framework, the reality is that being a captain of a ship poses an extremely high risk of being criminalised,” Szymanski told Lloyd’s List.
“InterManager wishes to see seafarers being treated like any other human — with dignity and respect, and not guilty unless proven otherwise.”
In August, X-Press Feeders expressed “deep concern” over the Sri Lankan Supreme Court ruling, ordering it to pay $1bn in damages.
The company criticised the judgment as premature, stating the vessel’s master, detained in Sri Lanka for over four years, has not yet faced trial and was not legally represented in court. It accused the court of treating him and company agents as “human collateral”.
The London Club also condemned the ruling, calling it arbitrary and lacking due process. It argued the case extended far beyond its original scope and was based on a discredited report. X-Press Feeders said the decision ignores the Sri Lankan authorities’ role and their failure to act on early warnings.
While the company acknowledged some compensation was warranted, it urged a fair, science-based assessment. The ruling undermined international maritime law, it said.
