By Yoshitha Perera   More than a year after the Singapore-registered container ship X-Press Pearl carrying chemicals and other goods and operated by X-Press Feeders, caught fire in May 2021, off the coast of Colombo, interim compensation has been paid to fisherfolk by the ship’s insurer on three occasions. It was Sri Lanka’s biggest marine environmental [...]

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X-Press Pearl: West coast fisherfolk find insurance payouts problematic

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Some fisher families badly affected by the accident, on the other hand, claimed that compensation is not being handed out properly. Pix by Akila Jayawardana

By Yoshitha Perera  

More than a year after the Singapore-registered container ship X-Press Pearl carrying chemicals and other goods and operated by X-Press Feeders, caught fire in May 2021, off the coast of Colombo, interim compensation has been paid to fisherfolk by the ship’s insurer on three occasions.

It was Sri Lanka’s biggest marine environmental disaster.

Anthony Jesudasan: Programme coordinator of National Fisheries Solidarity Movement

For 13 days, the ship was in flames, while the Government and the then-ports and shipping minister Rohitha Abeygunawardena, the Sri Lanka Ports Authority then chairman, retired general Daya Ratnayake, fiddled. The ship broke in two and sank. Tons of micro plastic pellets washed up on beaches that stretched for kilometres. Dead marine life also washed up onto beaches, including hundreds of turtles. Fishermen lost their livelihoods.

The Government has yet to receive approval for the requested full claim by the ship’s insurer to be given to fishermen. Initiatives are underway to obtain additional interim compensation for them, the Fisheries Ministry director general  Dhammika Ranatunga said.

He explained how compensation for three districts was calculated.

“After the accident last year, we set a prohibited zone for fishing. We have appointed village level committees and found out who lost their livelihoods,’’ he said.

Three districts are involved — Gampaha (from Negombo to Wattala), Colombo (to Moratuwa), Kalutara, and a small part of Panadura. Officials have identified 15,032 fishermen who are eligible for compensation, along with 4,888 connected to fishing activities.

“There are fishermen in 23 different categories. There are 24 categories among those who are engaged in jobs related to the fishing sector. We have calculated the income loss of this community,” Mr. Ranatunga explained.

The damage per day to boat owners and related workers has been calculated and compensation has been received from the ship’s insurer through the Attorney General’s Department.

“The insurance company hired a London based consultancy firm. They came to Sri Lanka twice,” he said.

Mr. Ranatunga said three interim payments were made to 297 Grama Seva divisions through 18 Divisional Secretariats. The money was deposited to bank accounts.

Housewife Nirmala Fernando

The first interim payment the Government received was US$1 million in 2021. At that time, the government decided to provide another US$2m as fisheries compensation from the money they received for other services. The ministry received US$3m (Rs. 420m) at that time.

Another US$1.75m was given in the second round in February, 2022. According to the then-exchange rate, the ministry had received Rs. 361m.

However, the third round of interim compensation was given by the company as a rupee payment.

“We did not approve it 100% because they took the previous exchange rate; Rs. 206 versus the American dollar,” Mr. Ranatunga claimed. The prevailing rate is  Rs. 360.

“If the insurance company made the payment in US dollars, the fishermen would get more. We accepted the third payment with objections. We informed the insurance company through the Attorney General’s Department. The amount we received as the third payment was only Rs. 911 million,” he said.

Some fisher families badly affected by the accident, on the other hand, claimed that compensation is not being handed out properly.

Mary Nilanthi, 46, who belongs to the fishing community in Munnakara, Negombo switched to a small catering business after the X Press Pearl disaster. Her husband who works in a multi-day trawler could not go fishing for more than a month due to the accident.

Fish vendor K. Catherine

“Most of the time, people involved in fisheries have not received compensation. We are against giving compensation to those who don’t deserve it,” she said.

Houswife Nirmala Fernando, 58, and her husband go deep sea fishing 15-20 days a month.

“We were unable to go to work for several months due to the accident. Compensation has been given three times, but some who got money are not those who are working. Even people who are related to fisher families but are not engaged in fisheries jobs have got compensation,” she claimed.

Authorities are not aware of compensation irregularities, she said.

Fish vendor, K. Catherine, 70, who has been selling fish daily for over 15 years since her husband’s death, could not carry on for about six months after the disaster.

“The authorities did not help us at all. I haven’t received anything,” she said.

Although the Government has compensated the fisherfolk, distribution has been problematic, said Anthony Jesudasan, programme coordinator of National Fisheries Solidarity Movement.

“At one point, it was claimed that the compensation would be provided through fishermen’s societies, but that, too, has not been implemented properly,” he said.

The group wants transparency on the amount received, how it was distributed so far, and how money will be provided in the future.

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