A limitation on damages action filed in Britain by insurers of the X-Press Pearl container vessel could force a delay in the ongoing compensation claim filed by Sri Lanka in Singapore. The Sunday Times understands that legal experts have informed the Government that it would be opportune to either lay by the claims action in [...]

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X-Press Pearl: British case may delay Lanka’s claim for compensation

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A limitation on damages action filed in Britain by insurers of the X-Press Pearl container vessel could force a delay in the ongoing compensation claim filed by Sri Lanka in Singapore.

The Sunday Times understands that legal experts have informed the Government that it would be opportune to either lay by the claims action in Singapore or ask the court for a lengthy delay until the UK case is concluded. The Sunday Times understands that legal experts have informed Sri Lankan authorities that it will be disadvantageous to proceed with the claims action in Singapore until the conclusion of the case filed by the insurers in the UK detailing how much they can pay in terms of damages caused by the disaster.

The insurers have filed the case in the Commercial High Court in London under the Convention on Limitation of Liability for Maritime Claims.

The Government, however, is determined to fight the UK case as well, given that the insurers are attempting to limit the damages that could be paid out with regard to Sri Lanka’s worst maritime disaster.

Justice Minister Wijeyadasa Rajapakshe said the insurers were attempting to delay the case in Singapore and added that the Government would take steps to intervene in the case.

“We want to end the case in the UK as quickly as possible. We believe we can prove that the ship owner’s negligence resulted in the tragedy given that the vessel had already raised concerns at two other ports (before proceeding to Sri Lanka),” the minister said. The Government will have to engage a law firm in the UK to represent its interests in the case filed by the insurers.

The matter will require Cabinet approval and a Cabinet paper in this regard is expected to be presented soon.

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