Govt. to set up Sri Lanka’s first-ever International Arbitration Centre

By Devin Jayasundera

The Ministry of Justice yesterday announced the setting up of Sri Lanka’s first-ever International Arbitration Centre at a media briefing.

Through this centre, international companies would be able to resolve any commercial-related disputes.

The Government aims to position Sri Lanka as an international arbitration hub in the region. The Justice Ministry has initially invested Rs. 100 million for this project.

This timely initiative in the background of the country’s aim to become a commercial hub in the region will require necessary legal structures to promote and attract stakeholders of international trade and commerce.

The committee to set up the arbitration centre is chaired by Justice Ministry Secretary Suhada Gamlath, PC and comprises Attorneys-at-law Dr. Harsha Cabral, PC, Hiran de Alwis and a representative of the Attorney General’s Department.

Sri Lanka currently has two arbitration centres in operation: the National Arbitration Centre and the Institute for the Development of Commercial Law and Practice (ICLP). It is said that these two centres will be amalgamated and become part of the proposed International Arbitration Centre, which will be administered by the Ministry of Justice, a Ministry source stated.

Currently the most prominent International Arbitration Centres in the region are in Singapore, Malaysia and Hong Kong. These highly esteemed arbitration centres are reported to be valued at more than US$ 1 billion.

The source noted that if Sri Lanka were to compete in this sphere, the independence of the judiciary of the country was of high importance in order to gain recognition and credibility from the international community.

The Government also hopes to enact a new statute on governing international arbitration for an effective dispute resolution mechanism.

The Board of Investment (BOI) has already allocated a three-acre land adjoining the High Court complex to set up the new arbitration centre and some new court houses.

The centre is expected to start operations in 2012.