Singapore-based X-Press Feeders has refused to pay a US$1 billion fine ordered by Sri Lanka's Supreme Court for damages caused by the 2021 sinking of the MV X-Press Pearl, reported Agence France-Presse.

Chief executive Shmuel Yoskovitz said the ruling undermines maritime liability limits and could set a dangerous precedent for future incidents. He warned that removing such limits may lead to higher insurance costs passed on to consumers.

The 2,756-TEU X-Press Pearl sank off Colombo Port after a fire believed to be caused by a nitric acid leak. Its cargo included 81 containers of hazardous materials and hundreds of tonnes of plastic pellets, which polluted 80km of coastline and halted fishing for months.

Ports in Qatar and India had refused to offload the leaking acid before the vessel entered Sri Lankan waters. The company has already spent $170 million on wreck removal, beach clean-up and compensation for fishermen.

Mr Yoskovitz said the firm is willing to pay more, but only under marine conventions and for a final settlement. He criticised the open-ended nature of the court's order, calling it a "hanging guillotine".

The Supreme Court ordered an initial $250 million payment by September 23 and scheduled a hearing on September 25. It also directed police and prosecutors to pursue criminal charges for non-compliance if parties are present in Sri Lanka.

The ship's Russian captain has been barred from leaving Sri Lanka for over four years. X-Press Feeders offered a fine for his release, but it was rejected.

The company obtained a London Admiralty Court order in July 2023 limiting liability to GBP19 million (US$25.5 million), which Sri Lanka is challenging. A related case in Singapore has been stayed pending the London outcome, with a pre-trial hearing due in May 2026.