Sri Lanka to charge taxes for scrap metal extraction out of ship wreckage

Sri Lanka on Tuesday said that extraction of scrap metal out of the wreck of X-press Pearl, the Singapore-flagged container ship which went up in flames and sunk in the country's waters, would be permitted only after the customs levies and a 10 per cent cess tax. "We had a meeting yesterday and it was decided that anyone wanting to take away scrap metal from the wreck would have to pay taxes after obtaining a licence for import and export. Additionally, the customs duties and a cess tax of 10 per cent must also be paid," state minister of finance Ranjith Siyambalapitiya said.

Some 48,000 tonnes of scrap metal is to be extracted from the wreckage.

In May 2021, the container vessel carrying hundreds of tonnes of chemicals and plastic nurdles caught fire while being anchored off the port of Colombo.


It took days to douse the raging fire even with the assistance of the Indian Navy and the fire and its wastage caused the worst environmental marine disaster in the island nation.

Sri Lanka had initially received USD 40 million from the insurer and is currently waiting for the second interim payment, the Marine Environment Pollution Authority officials said.