Sri Lanka is yet to receive compensation amounting to over Rs 3.7 billion owed due to environmental damage caused by an oil slick that occurred due to the fire aboard the container vessel MT New Diamond, which caught fire off the Eastern coast of Sri Lanka in September last year. A final report on a [...]

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Sri Lanka still waiting for compensation over last year’s oil slick from MT New Diamond

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Sri Lanka is yet to receive compensation amounting to over Rs 3.7 billion owed due to environmental damage caused by an oil slick that occurred due to the fire aboard the container vessel MT New Diamond, which caught fire off the Eastern coast of Sri Lanka in September last year.

A final report on a technical assessment regarding the environmental damage caused by the disaster was handed over to the local insurer of MT New Diamond’s shipping company in April. The exhaustive report compiled by a team of experts took four months to complete and the damage was calculated at USD 19 million (Over Rs 3.76 billion), Marine Environment Protection Authority (MEPA) Chairperson Dharshani Lahandapura told the Sunday Times.

The insurer has told MEPA that it needs time to study the report, Ms Lahandapura noted, adding that they were hopeful of a positive response soon.

The Greek owners of the Panama flagged New Diamond was given a bill of Rs 442 million in costs incurred by various Government agencies when fighting the fire aboard the vessel. Legal action was also instituted against the ship’s captain after investigators found that his actions contributed to the incident.

He was fined Rs 12 million after pleading guilty to the charges. The vessel was allowed to leave Sri Lankan waters only after both the Rs 442 million damage costs and the Rs 12 million fine were deposited, authorities stressed.

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