Sri Lanka Seeks Compensation as Debris From MSC Elsa 3 Washes Ashore
Sri Lanka’s Marine Environment Protection Authority (MEPA) confirmed that it has begun negotiations with MSC Mediterranean Shipping Company seeking compensation for environmental damage related to the MSC Elsa 3 casualty. The government is considering legal action, although a representative said MSC has accepted responsibility in the ongoing discussions.
The containership sank in late May, southwest of the Indian state of Kerala on the west coast. The direct distance is over 300 miles from Sri Lanka, but approximately 500 miles following the ocean currents around the southern tip of the Indian continent. Despite the distance, Sri Lankan authorities report they are clearing plastic beads (nurdles) from the beaches daily. Officials declined to identify the quantity of material retrieved, but did confirm that so far, no oil from the wreck has reached the shores of Sri Lanka.
Officials told the media that plastic pellets have been found washed ashore in areas such as Jaffna, Kalpitiya, and Delft. They said the debris is being collected and will be used as evidence in the demand for compensation and a possible insurance claim.
They are discussing the best course of action while the Lankasara news outlet reports initial discussions are underway with MSC. It reports that the damage assessment is ongoing. The report says in addition to the nurdles, packing materials, plastic fragments, damaged consumer goods, and other debris believed to be from the MSC Elsa 3 have been washing up along the shore as far south as the Hambantota District at the southern tip of the island. On July 29, Sri Lanka alerted residents as part of its "Clean Sri Lanka" coastal clean-up campaign.
Reports from India have said that so far, MSC’s lawyers have denied claims of widespread environmental damage from the casualty. India’s Directorate General reported that approximately 60 containers washed ashore and were recovered. As of July 17, it says 557 metric tons of nurdles have been collected from the affected shoreline areas. Its priority, however, is now on the second phase of the recovery operation, which was due to start in the coming days. Equipment has been moved to the site for a campaign of saturation diving as part of the effort to pump the fuel and oils from the wreck. In June, divers were successful in capping the tanks to stop a slow seepage of oil.
Sri Lanka looks to the recent court decision from the 2021 casualty of the X-Press Pearl as a model for its compensation claims. The country’s highest court ordered the shipping company and its agents to pay nearly $1 billion in compensation for what was termed the worst environmental incident in the Indian Ocean.
India has also launched legal actions for compensation from MSC for the impact of the casualty. The Indian courts impounded the containership MSC Akiteta II, which is being held until the company posts a bond in the case. The initial court filing made at the beginning of July lists a total claim for $1.1 billion, with the bulk, $1 billion, for damages as a result of pollution. It is also seeking $44 million to restore the environment and a further $61.3 million in economic loss for the fishing community.