Move expected to reduce case backlogs and boost investment climate:
In a significant step towards enhancing the efficiency and effectiveness of the Sri Lankan dispute system, eight leading local business conglomerates have inked a Memorandum of Understanding (MoU) to prioritise commercial mediation as an alternative to litigation.
This progressive move, made possible through the assistance of the United States Agency for International Development (USAID) and its Effective and Efficient Justice (EEJ) activity, is expected to alleviate case backlogs and bolster Sri Lanka’s investment and commercial development climate.
The agreements are part of the commercial mediation pilot program launched by USAID, which aims to train the participating companies in commercial mediation and other Alternative Dispute Resolution (ADR) methods.
These workshops will provide the companies with exposure to international-standard mediation and commercial mediation services. The companies will be encouraged to incorporate mediation clauses into their corporate contracts, fostering a culture of resolving disputes amicably and efficiently.
USAID Acting Mission Director, Ali Ezzatyar said, “By integrating international best practices in case management, court management, and legal education, while actively promoting ADR mechanisms, we envision a reduction in case delays and court backlogs. Our ultimate goal is to uphold the principles of people-centered justice, ensuring easy access to a robust justice system.”
Since 2021, the USAID’s EEJ activity has been instrumental in empowering the Sri Lankan justice sector with global best practices, systems, and tools. Through this collaborative effort, stakeholders seek to transform the country’s judicial landscape, offering swift and fair resolutions to disputes and promoting a stronger rule of law.
The commercial mediation pilot program is a pivotal step towards fostering an investment-friendly environment in the island, as it addresses the critical need for efficient dispute resolution mechanisms.
With USAID’s support, these companies are now better equipped to navigate disputes while reducing the burden on the judicial system and paving the way for smoother commercial transactions.
“I think this program is going to help us take on some of the challenges which are in the global market. So thank you very much to USAID. And I sincerely hope that we will now see commercial mediation as a clear strategy,” Director of Dilmah Ceylon Tea, Dr. Ravindra Fernando said after the MoU signing.