UNCITRAL-RCAP seminar in Colombo raises hopes in electronic commerce law and secured transactions

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The two-day South Asia seminar on Electronic Commerce Law and Secured Transactions regime held in Colombo ended recently, raising hopes of great days in this sector in the future. The United Nations Commission on International Trade Law – Regional Centre for Asia and the Pacific (UNCITRAL-RCAP) conducted the seminar as its 2014 South Asia Seminar. The first day’s first address was the welcome speech by ICT Agency of Sri Lanka (ICTA) Chairman Senior Presidential Advisor and Peradeniya University Chancellor Professor P. W. Epashinghe. The Professor said: “UNCITRAL is the core legal body of the United Nations system in the field of international trade law and a legal body. It has a universal membership specialising in commercial law reform worldwide for over 40 years. UNCITRAL’s business is the modernisation and harmonisation of rules on international business. Trade means faster growth, higher living standards, and new opportunities through commerce. In order to increase these opportunities worldwide, UNCITRAL is formulating modern, fair, and harmonised rules on commercial transactions.” He added: “Sri Lanka has been an early adapter to the UNCITRAL texts on Electronic Commerce. Sri Lanka became the first country in South Asia to sign the UN Electronic Communications Convention on 6 July 2006. The most relevant legislation for use of ICT in government and establishment of e-government services is the Electronic Transactions Act of 2006.”   Preparation to accept computer evidence Guest of Honour Solicitor General and Acting Attorney General Y. Wijeyatilake PC began his address with a recap of the situation that prevailed in Sri Lanka before the enactment of the Electronic Transactions Act No. 19 of 2006. “Many years ago, I believe it was in the late 1970s, there was a famous case where an attempt was made to lead computer evidence. The judge overlooked the case and disallowed that application saying that ‘our ordinance to the admissibility of evidence do not provide for the admission of computer evidence’. Since then vast strides have been taken to rectify that anomaly that existed years go.” Explaining how Sri Lanka’s laws were modernised in order to accept computer evidence, he said: “The first step taken in the direction of computer evidence was the Evidence Special Provisions Act No. 14 of 1995. As far back as 1995 steps were taken to permit computer evidence in legal proceedings. There after the legal profession as a matter of course started taking application wherever it was relevant to take computer evidence. “With the signing of the Electronic Communication Convention in 2006 further steps were taken to modernise Sri Lankan law. The Electronic Transactions Act No. 19 of 2006 is based on the standards of UNCITRAL, Model Law on Electronic Commerce (1996) and Model Law on Electronic Signatures (2001). This law was groundbreaking; it introduced features not known or considered before. Although the Special Provisions Act No. 14 of 1995 made provisions for computer evidence, the Electronic Transactions Act No. 19 of 2006 went miles further and it was a game changer. “The offer and acceptance to be made electronically was legally enabled, that was specifically provided by the section 11 of this Act. Even though there were conflicts between these two Acts, the Electronic Transactions Act was supplementary for the Special Provisions Act. “The secured Transactions Act 49 of 2009 was based on UNCITRAL legislative guide on secured Transaction but we also have a specific piece of legislation dealing with computer crime, that is Act No. 24 of 2007. Likewise we have several pieces of legislation specially providing electronic mode of activity. Sri Lanka is in the leading role of enacting and implementing laws relating to electronic transactions.”   Legal and political challenge RCAP Head of UNCITRAL Joao Ribeiro told the ceremony that UNCITRAL was not only a method but also a vision. “The method and vision are both for legal technicians and politicians. From a technical standpoint, we have to imagine that lawmakers from around the world will meet in one room to discuss the complex issues involving business law and international business transactions. We have to imagine that those people will come to a common understanding of those issues by developing a common regulatory approach and at best agree on a common legislative framework that will ultimately govern a broad range of commercial transactions worldwide. “For this to happen, more than imagination we need to have faith in the technical ability of those entrusted with the drafting of a world standard to distil the effort of several legal theories into a practical set of confection, in a satisfactory way in the very different legal, political, economical environments in which your trade is conducted. This is by all means a remarkable fit not only from a legal point of view but from a political one.”   UNCITRAL’s role in legal convergence Chief Guest Mohan Pieris, PC beginning his address referred to the UN Electronic Communications Convention’: “This seminar will prepare the grounds for Sri Lanka to ratify the convention. Although Sri Lanka was involved in the drafting of this convention and signed it in July 2006, we are yet to ratify it.” The Chief Justice explained the model laws of UNCITRAL and how it plays a major role in legal convergence, further highlighting UNCITRAL’s definition of uniformity: “Unification of laws in the end, would accomplish coordination of national private laws. However, it should be borne in mind that international conventions only have the force of law in Sri Lanka; it’s not the law but just a force. It has to be incorporated in to our national law by legislation.”   Change in 10 years ICTA Legal Advisor Jayantha Fernando said: “ICTA was established a little more than 10 years ago and at the time we started, we did not have any of the Acts except the ICT Act of 2003.” Fernando drew attention to the fact that ICT literacy at the time when ICTA was established was around 7-8% and Sri Lanka was way down according to the index which measures countries depending on the adoption of ICT on a policy perspective. “When we embarked on this journey, we were at the 83rd position of the ranking of 115 countries but now we have come up to the 72nd position,” noted Fernando, who praised and thanked the UNCITRAL for their immense support extended to ICTA and for attending this event. The inauguration ceremony was followed by panel discussions, four per day.   Computer, a great tool for rural youth empowerment A highlight of the second day (19) was the address by Public Management Reforms Minister Navin Dissanayake. In his address the Minister underlined the great opportunities that the computer has opened the door for all. “There are many opportunities yet to be tapped in this sector. ICT offers great opportunities especially for the rural youth,” the Minister said. Panel sessions covering a broad range of Electronic Commerce Law and Secured Transactions law subjects were moderated by Joao Ribeiro, (Head of UNCITRAL – RCAP), Jae Sung LEE (Legal Officer, UNCITRAL), Jayantha Fernando (Legal Advisor, ICTA), Kuvera De Zoysa PC, Prof. Hong Xue (Director, Inst. for Internet Policy and Law, Beijing University), Nihal Fernando PC, Ms. Elaine Maceachern (Snr. Specialist, Secured Transactions – Asia and the Pacific, IFC), Dr. Dayanath Jayasuriya PC and Dr. Rohan Perera PC. Keynote addresses were delivered by Investment Promotion Deputy Minister Faiszer Mustapha PC, Kuvera De Zoysa PC, Sri Lanka Central Bank Deputy Governor Ananda Silva, Lanka Clear CEO Sunimal Weerasuriya. Nithya Partners Precedent Partner Arittha Wickramanayake was the Lead Discussant at the Final Round-table. The closing address was delivered by ICTA CEO Reshan Dewapura. Expert speakers from Japan China, India, Japan, Australia, Singapore, Iran, Vietnam, the Maldives and Nepal addressed the seminar. A large number of Sri Lankan speakers too shared their fund of knowledge and experience. Among these were also the following: Rohana Palliyaguru, (Operations Manager – Sri Lanka CERT, National Certification Authority framework in Sri Lanka),K A Janaka Lakmal, (Deputy General Manager, CRIB, Sri Lanka), Chaminda Hettiarachchi , (Deputy General Manager Legal, Central Finance PLC ), Chanaka De Silva, (Partner, Nithya Partners, Sri Lanka ), Ali Sabry, PC, Indira Nanayakkara, (Head of Department of Commercial Law, University of Colombo), A. W. Sudattha I. Silva, (Superindent of Customs (ICT), Sri Lanka Customs), Farzana Jameel, (Deputy Solicitor General, Sri Lanka), Milinda Gunatilleke, (Deputy Solicitor General, Sri Lanka) and Lasantha Hettiarachchi, (Attorney- at-Law).

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