Tuesday Dec 24, 2024
Tuesday Dec 24, 2024
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The Government is to set up a new High Court for Investment Disputes for large-scale investments, whilst introducing a new Arbitration Act to create a legal framework conducive to investments in Sri
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| Cabinet Co-Spokesman Dr. Ramesh Pathirana |
Lanka.
The Investment Disputes High Court will hear and decide the cases related to disagreements within the financial limit of Rs. 50 million arising out of an initial investment of Rs. 100 million or more.
Accordingly, the Cabinet of Ministers at its meeting on Monday had approved to instruct the Legal Draftsman to prepare a Bill as per the recommendations of the Commercial Law Reform Sub-Committee.
The Justice Minister Ali Sabry instructed the Commercial Law Reform Sub-Committee appointed under the purview of the special unit of his Ministry to make recommendations on the legal reforms that are needed to create a legal environment conducive to investment in Sri Lanka.
In addition, the Cabinet of Ministers approved to introduce a new Arbitration Act, to address existing barriers at the settlement and enforcement stages of decisions to enable large-scale domestic and foreign investment in Sri Lanka.
“The new laws will help to fast-tract hearings and create a business conducive environment to attract investments,” Cabinet Co-Spokesman and Plantation Industries Minister Dr. Ramesh Pathirana said at the post-Cabinet meeting media briefing yesterday.
The Commercial Law Reform Sub-Committee identified the need to study the facts regarding the field of arbitration in Sri Lanka and introduce a new Act.
The proposal to this effect tabled by Justice Minister Sabry was approved by the Cabinet Ministers to instruct the Legal Draftsman to prepare an Arbitration Bill.
Justice Ministry Head of Reforms and Coordinating Secretary Minister’s Bureau Attorney-at-Law Shamir Zavahir said a key concern for investors in any jurisdiction is the speed at which they can resolve any dispute that arises in relation to their investment.
“If the legal system doesn’t allow for a speedy resolution, they will see it as a risky environment for their money, and thus would discourage them. It is hoped that the Investment Disputes High Court and the new Arbitration Act will address these key concerns and ensure that Sri Lanka is a top-tier destination for investment,” he added. (CdeS).
