Sri Lanka will lose the compensation claim of an estimated USD 10 billion if legal action pertaining to the MV X-Press Pearl ship fire is not instituted within the next 45 days, the Centre for Environmental Justice (CEJ) said.
A report published by CEJ stated that under Sri Lankan Law, the case to claim compensation has to be filed within two years of the incident, thereby before 29 May 2023.
It was observed that the failure to do so would be a failure on the part of the Attorney General’s Department and the Cabinet of Ministers.
“For now, there is a request for USD 6.4 billion as compensation for the harm caused to the marine environment, the shore and the neighbouring communities, tourism, fishermen, and the pollution it caused to the atmosphere. Based on legal advice, CEJ identifies that the existing legal precedents in Sri Lanka are sufficient to receive compensation which was reiterated by other professionals.
However, at present, the Cabinet, the Ministry of Justice, together with the Attorney General’s Department, have taken the decision to conduct legal proceedings in Singapore, creating a sense of uncertainty.
We have been informed that an Australian has advised the Government of Sri Lanka to do so and that the Singaporean authorities are already preparing for the necessary proceedings. The former and present Ministers of Justice Ali Sabry and Wijeyadasa Rajapakshe are aware of this situation. We have also learnt that Sri Lanka has USD 4.5 million to fund this endeavour,” the report stated.
Even with the lapse of almost two years since the MV X-Press Pearl ship fire, Sri Lanka is yet to file legal action to obtain compensation for the damage caused, despite there being adequate laws.
It is rather intriguing as to why such an important cause of action has been delayed, as seeking compensation for the irreparable damage caused to the environment is something that should be on the top of the list of priorities.
The MV X-Press Pearl ship entered Sri Lankan waters on 19 May 2019 and a fire broke out on the ship on 20 May, following a nitric acid leak that rapidly spread across the containers in the ship and its bridge.
Due to the intensity of the spread of fire, and strong winds, the inferno could not be contained and on 2 June, the ship sank together with hazardous and noxious substances affecting the environment and the livelihood of fishermen. This was one of the biggest maritime disasters and the direct and indirect impacts are still affecting the environment and the economic stability of fishermen.
Although the damage caused is far beyond what could be numerically assessed, following months of assessment, the relevant stakeholders determined what should be sought as compensation, including that for the damage caused to the livelihood of fishermen.
Following the estimation, the Government, recently, decided to institute legal action pertaining to the ship fire in Singapore as opposed to filing it in Sri Lanka and this decision has stirred up several controversies as well.
As reported in this paper on 5 November 2022, the Government has decided to file a lawsuit against the firm owning the cargo vessel MV X-Press Pearl, over its failure to pay the requisite compensation to Sri Lanka, with the State Courts Centre for Dispute Resolution (SCCDR) in Singapore.
Despite the debacle on calculating damages and deciding on the Court in which action should be instituted, the Centre for Environmental Justice (CEJ) made a rather concerning revelation that Sri Lanka will lose the compensation claim of an estimated USD 10 billion if legal action pertaining to the MV X-Press Pearl ship fire is not instituted within the next 45 days.
A report published by CEJ stated that under Sri Lankan Law, the case to claim compensation has to be filed within two years of the incident, thereby before 19 May 2023. It was observed that the failure to do so would be a failure on the part of the Attorney General’s Department and the Cabinet of Ministers.
“For now, there is a request for USD 6.4 billion as compensation for the harm caused to the marine environment, the shore and the neighbouring communities, tourism, fishermen, and the pollution it caused to the atmosphere. Based on legal advice, CEJ identifies that the existing legal precedents in Sri Lanka are adequate to receive compensation which was reiterated by other professionals.
However, at present, the Cabinet, the Ministry of Justice, together with the Attorney General’s Department, have decided to conduct legal proceedings in Singapore, creating a sense of uncertainty. We have been informed that an Australian has advised the Government of Sri Lanka to do so and that the Singaporean authorities are already preparing for the necessary proceedings. The former and present Ministers of Justice Ali Sabry and Wijeyadasa Rajapakshe are aware of this situation. We have also learnt that Sri Lanka has borrowed USD 4.5 million to fund this endeavour,” the report stated.
Thereby, whilst there are several stakeholder interventions and research studies as to the damage caused by the ship fire and the remedial measures that ought to be taken, the fact that the relevant authorities have delayed instituting legal action thus far is rather concerning.
Due to the fact that we only have 45 days remaining, the Government cannot afford to drag its heels, and must institute legal action promptly.
(ceylontoday.lk)
