Sri Lanka faces the possibility of losing a compensation claim of approximately US$ 10 billion if it fails to initiate legal action pertaining to the MV X-Press Pearl ship fire in the next 45 days, the Centre for Environmental Justice (CEJ) said.
According to Ceylon Today, the CEJ said in its latest report that as per Sri Lanka’s law, a compensation claim must be filed within two years of the incident, that is 29th May 2023.
As of now, there is a request for US$ 6.4 billion as compensation for the harm caused to the marine environment and various other effects caused to Sri Lanka.
Based on legal advice, the existing legal precedents in Sri Lanka are sufficient to receive compensation.
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, CEJ pointed out.
Stating that the government has reportedly been advised by an Australian to follow the procedure, the CEJ stated that the Singaporean authorities are already preparing for the necessary procedures and both Foreign Minister Ali Sabry and Justice Minister Wijeyadasa Rajapakshe are aware of the situation.
The CEJ report further stated that it has also been learnt that Sri Lanka has borrowed USD 4.5 million to fund this endeavour.
The CEJ added that, however, the failure to file a compensation claim before the required time period would be a failure on the part of the Attorney General’s Department and the Cabinet of Ministers. (NewsWire)
