India has not demanded compensation from Sri Lanka for assistance during two recent maritime disasters: High Commission

The Indian High Commission here on Wednesday has termed certain media reports as "completely false and incorrect" that claimed New Delhi demanded compensation from Colombo over its assistance extended to the two recent maritime disasters in Sri Lanka's waters.

The mission clarified that it has only submitted the cost to be claimed from insurers based on international practice.

On September 2020, the MT New Diamond was engulfed in flames on the eastern coast of Sri Lanka.

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The tanker was transporting 270,000 metric tonnes of crude oil from the port of Mina Al Ahmadi in Kuwait to the Indian port of Paradip at the time of the incident.

On May 2021, Sri Lanka witnessed one of its worst marine environmental disasters after the Singapore-flagged container vessel MV X-Press Pearl, caught fire 16km off Colombo.

“The High Commission of India has come across media reports which suggest that Government of India has demanded compensation/damages from Government of Sri Lanka towards the assistance provided during the fire incidents onboard MT New Diamond and MV Xpress Pearl in September 2020 and May-June 2021. Such reports are completely false and incorrect," the Indian High Commission said in press release.

The Indian government immediately deployed ships of the Indian Coast Guard in response to specific requests from the Sri Lanka Navy for providing expeditious assistance to fight the fire incidents onboard MT New Diamond and MV Xpress Pearl, it said.

“Rescue operations conducted by these ships were instrumental in curtailing the hazardous effects of the two fire incidents and thereby limiting the damage on the maritime and marine environment of Sri Lanka," it said.

In line with "Polluter Pay Principle" as per international norms, we have raised a claim for deployment, salvage activities and items/stores undertaken by these ships, the press release said.

"India has not demanded any damages/compensation from Government of Sri Lanka and Government of India’s immediate deployment of ships were in line with ‘Neighbourhood First’ policy and Security And Growth for All (S.A.G.A.R) doctrine," it added.

India has extended multi-pronged assistance to Sri Lanka during the peak of its economic and humanitarian crisis in line with its "Neighbourhood First" policy and as an earnest friend and partner of Sri Lanka.

Till date, lines of credit worth over $ 4 billion have been extended to Sri Lanka in diverse sectors including supply of essential items, petroleum, fertilisers, development of railways, infrastructure, defence sector and renewable energy, according to the Indian High Commission here.

On March 20, the IMF extended a nearly $ 3 billion bailout facility to debt-ridden Sri Lanka that would help stabilise the country's economy after it was jolted by a devastating economic crisis last year.