Opposition SJB issues letters of demand for X-Press Pearl disaster

Govt. files claims in UK and Singapore courts

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By Editor_1
Smoke billowing from the Singapore-registered container ship MV X-Press Pearl which carries hundreds of containers of chemicals and plastics, as its towed away from the coast of Colombo on June 2,2021, following Sri Lankan President Gotabaya Rajapaksa's order to move the ship to deeper water to prevent a bigger environmental disaster -Sri Lanka Air Force / AFP

COLOMBO – Sri Lanka’s main opposition party, the Samagi Jana Balawegaya (SJB), has issued letters of demand to the owners of the MV X-Press Pearl containership seeking compensation for the worst maritime disaster in the country’s history, days after the government filed twin claims in Singapore and the UK, the latter after insurers and owners of X-Press Pearl went to Admiralty Courts seeking to limit compensation to 19.2 million sterling pounds.

SJB and opposition leader Sajith Premadasa told Parliament on Thursday (11) that the party filed legal action against a number of shipping companies associated with the ship in a bid to assist the Sri Lankan government’s efforts to file a damages claim.

A preliminary letter of demand (LoD) has been issued by the SJB to EUSRO (Pvt) Ltd, followed by LoDs to Sea Consortium (Pvt) Ltd, X-Press Feeders (Pvt) Ltd, Sea Consortium Lanka Ltd, London Steam Ship Owners Mutual Insurance Association Ltd, GAC Shipping Ltd and one other company.

“These shipping companies seem to think there are groups in this country that can be bought. There is no one in our country who can be bought.

“I think this will be a strength to our efforts to obtain 6.4 billion [US dollars],” said Premadasa, during the second day of a Parliament debate on the X-Press Pearl disaster and the compensation owed to Sri Lanka, which has become a matter of controversy, particularly in light of allegations by Justice Minister Wijeyadasa Rajapakshe that a Sri Lankan official has taken a colossal bribe to sabotage any litigation.

The opposition has accused the government of coming up with excuses for not actively pursue the damages claim after the government claimed on Wednesday (10) that debating the issue in Parliament would disrupt legal proceedings that were already underway.

According to Minister Rajapakshe, the government has filed a claim in Singapore but will also fight the case in the UK after insurers and owners went to Admiralty Courts seeking to limit compensation to 19.2 million sterling pounds.

Sri Lanka filed a case in Singapore on April 25, seeking damages for the unprecedented disaster. The case scheduled to be heard in June has now been brought forward to early May. Sri Lanka’s lawyers will seek more time, Rajapsakshe said.

An expert committee appointed on the matter has estimated the total damage at 6.4 billion US dollars.

Sri Lanka has sought 22.1 million US dollars in damages for the marine environment and 273.014 million US dollars for fishermen, Rajapasksa told Parliament.

India has sought 495.3 million Indian rupees from Sri Lanka as the cost for firefighting operations, which was 1941.5 million in Sri Lankan rupees.

Sri Lanka has hired Dentons Rodyk and Davidson LLP legal firm in Singapore and Sparke Helmore of Australia to argue its case.

The owners of the vessel and its insurers have gone to an Admiralty Court in the UK seeking to cap damages to the ship and the marine and coastal environment at 19.2 million sterling pounds, Rajapakshe said.

King’s Counsel Peter MacDonald from DAC Beachcroft firm has been hired to represent Sri Lanka in seeking a removal of the cap on damages, he said.

-economynext.com

 

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