‘World class Arbitration Court Complex in Colombo, a priority’

Sarath Malalasekera

“The International Law on Arbitration is the dominant commercial law that unites the world of commerce. The standard set by the New York Arbitration Convention is the basis of arbitration systems of the world, said ICLP Arbitration Centre Secretary General S S Wijeratne.

He said that the proposal by Justice Minister Rauf Hakeem endorsed by President Mahinda Rajapaksa to set up a world class Arbitration Court complex in Colombo needs to be given priority.

“In 1995, then MinisterMahinda Rajapaksa presiding over a diploma award ceremony of the Institute of Commercial Arbitration Centre (ICLP) stated that Sri Lanka’s potential as an international arbitration hub of South Asia should be developed. Following year, then Trade and Commerce Minister late Jeyaraj Fernandopulle reiterated the same thought and assured government support to establish an Arbitration Centre of international standard.

“The proposal should receive the support of Sri Lanka’s legal and commercial community as alternative dispute resolution institutions are fast overtaking the traditional court systems in the process of international commercial development. The Commercial Arbitration Centres in Singapore, Kuala Lumpur, Hon Kong and Beijing are leading Asian examples and economic symbols of the economic boom of the Asian miracle.

ICLP Secretary General said that Minister Rauf Hakeem’s proposal which was endorsed by President Mahinda Rajapaksa and Justice Ministry officials needs to be put into practice. Currently, Sri Lanka has two seats of arbitration, namely the INLP Arbitration Centre, which has developed internationally acceptable arbitration rules, and the National Arbitration Centre which operates on adhoc Arbitration rules. Both institutions as pioneers are rendering a yeoman service but compared to the role of commercial arbitration to the East Asian dynamic economies, the development of our arbitration institutions are insignificant, he said.

“Sri Lanka, due to the debilitating decades of armed conflict made her to lag behind East Asian economies but was the first South Asian country to enact a Comprehensive Arbitration Act No 11 of 1995 based on UNCITRAL Arbitration Model Law and Swedish Arbitration rules. Sri Lanka’s Arbitration Law was followed by India, Nepal and Bangladesh but arbitration as a commercial dispute resolution process continued to lag behind East Asia and Western developed countries.

“International arbitration as against litigation in local courts could flourish only with the international co-operation. Sri Lanka’s lost decades of law hindered the development of international commercial institutions.

“Arbitration involves international co-operation and the support of global business leaders who have little time to go through and participate in Sri Lankan Courts procedures, Wijeratne said.