The Attorney General (AG) last evening forwarded a letter to the owners of ill-fated oil tanker MT New Diamond informing them to deposit USD 20 million in Sri Lanka as a guarantee until proceedings into a civil claim in relation to the case are initiated. AG Dappula de Livera PC forwarded the letter regarding the [...]

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Lanka demands USD 20m guarantee from fire-hit supertanker’s owners

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The Attorney General (AG) last evening forwarded a letter to the owners of ill-fated oil tanker MT New Diamond informing them to deposit USD 20 million in Sri Lanka as a guarantee until proceedings into a civil claim in relation to the case are initiated.

AG Dappula de Livera PC forwarded the letter regarding the guarantee after analysing the interim report submitted by the Marine Environment Protection Authority (MEPA) on the damage to the country’s marine environment caused by the oil leak from the vessel.

The report was handed over during a special meeting the AG and his team had with representatives of Government stakeholders involved in the operation to render assistance to the stricken vessel and prevent damage to Sri Lanka’s marine environment. Those who were present included the Navy’s Director Operations Admiral Y.N. Jayarathna, MEPA Chairperson Dharshani Lahanadapura and Merchant Shipping Director General A.W. Seneviratne.

Based on the contents of the interim report, the AG has determined that there are grounds to initiate legal proceedings for a civil liability claim against the Greek owners of the Panama-flagged tanker for damage caused to Sri Lanka’s marine environment due to the oil leak from the vessel.

In its interim report, MEPA had noted that it would take between two to three months to arrive at a final estimate of the damage caused. As such, the AG has taken steps to inform the owners of the vessel in writing to deposit a USD 20 million guarantee in the country until a civil claim has been initiated. The letter sent by the AG will be forwarded to the owners of the company through the law firm representing their Colombo based local agent.

In another development, the owners and salvors of the oil tanker agreed yesterday to immediately settle the entire claim of Government stakeholders amounting to Rs. 442 million for costs incurred when assisting the vessel after it caught fire following an explosion onboard on September 3.

MEPA Chairperson Lahanadapura told the Sunday Times that MT New Diamond’s owners had been requested to select a route through which the ship can be towed out of Sri Lankan waters. The MEPA would grant approval for the passage of the ship once the payment for the environmental damages had been agreed upon, she added.

She also noted that the Merchant Shipping Secretariat had confirmed that the ship was in a condition to withstand the towing.

Meanwhile, Steiros Ilias, the Greek Captain of MT New Diamond is set to appear before the Colombo Chief Magistrate’s Court tomorrow after being issued notice. Captain Ilias is currently undergoing quarantine under the care of the Sri Lanka Navy at a hotel in Galle. Meanwhile, the rest of the tanker’s 21 crew members have been allowed to leave the country after completing their quarantine period.

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