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An Eye on P&I Episode 20: The X-Press Pearl – The legal aspects

X-Press Pearl legal fallout: Sri Lanka Supreme Court ruling on implications for shipowners, operators, polluter-pays liability and billion-dollar compensation.

In this final episode of our mini-series on the total loss of the X-Press Pearl off Sri Lanka in May 2021, our hosts examine the legal fallout from the incident. They unpack the Sri Lankan Supreme Court’s landmark July 2025 judgment—brought as a constitutional “fundamental rights” case—and what it means for shipowners, operators, agents, and state bodies. The discussion covers the parallel criminal proceedings, Sri Lanka’s non-participation in key limitation and pollution conventions, and the Court’s findings on causation and “polluter pays”/absolute liability. They also discuss the controversial interim order for a US$1 billion payment while a Compensation Commission works to assess total damages.

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Key takeaways

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The case sets a precedent on overspill risk, seafarer treatment, environmental damage assessment, places of refuge, and hazardous cargo regulation. Outcome remains uncertain; diplomatic solutions hoped for.

About our speakers

John Trew

Special Adviser, Marine, Cargo & Logistics

  • United Kingdom

Chloe Taylor

Client Manager, Marine, Cargo & Logistics

  • United Kingdom

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