Alternate Dispute Resolution Law at Sri Lanka
Sri Lanka has developed a comprehensive legal framework for Alternative Dispute Resolution (ADR), encompassing mediation, arbitration, and conciliation. These mechanisms aim to provide efficient, cost-effective, and amicable solutions to disputes, reducing the burden on the formal judicial system.
⚖️ Legal Framework for ADR in Sri Lanka
1. Mediation Boards Act No. 17 of 1988 (as amended)
The Mediation Boards Act institutionalized mediation in Sri Lanka, establishing a network of mediation boards across the country. These boards handle various disputes, including civil matters related to property, debt, and damage, as well as certain criminal offenses such as property offenses, assault, trespass, and defamation. Disputes can be referred to mediation voluntarily, mandatorily (for specific cases), or by court order with the consent of both parties. Mediation sessions are conducted by panels of trained mediators, and legal representation is generally not permitted during the process .
2. Arbitration Act No. 11 of 1995
The Arbitration Act provides a legal framework for resolving disputes through arbitration. It recognizes the autonomy of parties to agree on arbitration procedures and appoint arbitrators. The Act aligns with international standards, facilitating the enforcement of both domestic and foreign arbitral awards. Arbitration is particularly suited for commercial disputes, offering a binding resolution that is enforceable in courts .(IFLR1000)
3. Commercial Mediation Centre of Sri Lanka Act No. 44 of 2000
This Act established the Commercial Mediation Centre of Sri Lanka (CMCSL), which was mandated to promote the use of mediation and conciliation in resolving commercial disputes. Although the Centre was inactive for a period, it was reactivated in 2017 to provide mediation services for commercial disputes, aiming to offer a more efficient alternative to litigation .
4. Mediation (Special Categories of Disputes) Act No. 21 of 2003
This Act empowers the Minister to appoint special mediation boards to handle specific categories of disputes, such as those arising from particular regions or circumstances. It reflects Sri Lanka's commitment to adapting mediation to address a diverse range of disputes effectively .(ABI)
🧑⚖️ ADR Institutions and Initiatives
Sri Lanka National Arbitration Centre (SLNAC): Established in 1985, SLNAC is the premier institution in Sri Lanka responsible for administering arbitration matters. It offers facilities for arbitration hearings and promotes the use of arbitration in resolving commercial disputes .
USAID and Commercial Mediation Agreements: In 2023, eight major Sri Lankan business conglomerates signed agreements with the United States Agency for International Development (USAID) to pursue commercial mediation. This initiative aims to reduce case backlogs and promote efficient dispute resolution in the business sector .
Bar Association of Sri Lanka's ADR Training: In 2024, the Bar Association of Sri Lanka, with support from the University of South Carolina’s Rule of Law Collaborative, conducted training sessions on ADR. These sessions aimed to enhance the skills of legal professionals in negotiation, mediation, and arbitration, contributing to a more efficient legal system .
✅ Summary
Sri Lanka's ADR framework is characterized by:
Comprehensive Legislation: Laws such as the Mediation Boards Act and the Arbitration Act provide structured processes for dispute resolution.
Institutional Support: Organizations like SLNAC and CMCSL facilitate arbitration and mediation services. practice of ADR.
This multifaceted approach positions Sri Lanka as a jurisdiction committed to accessible and effective dispute resolution mechanisms.
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