Monday Dec 16, 2024
Monday Dec 16, 2024
Wednesday, 2 October 2013 00:00 - - {{hitsCtrl.values.hits}}
Speaking to the media, Sri Lanka National Arbitration Centre (SLNAC) Chief Executive and Member of the Board of Governors Hiran de Alwis and SLNAC Member of Board of Governors and National Chamber of Commerce Deputy President Sujeeve Samaraweera noted that the country’s arbitration laws are based on the model law, an internationally relevant standard with a special high court for the enforcement of arbitration awards. “Theoretically we have everything in place,” de Alwis sad. “What we need is effective enforcement of the existing law.”
Established and incorporated in 1985, SLNAC is the oldest arbitration centre in Sri Lanka with several distinguished lawyers and other professionals and bodies representing key areas of business on board. One of the two privately run centres that promotes arbitration, SLNAC takes up close to 60 cases a year, of which 80% is resolved within 365 days.
“Arbitration is a form of private sector dispute resolution, where the parties are given the autonomy to resolve their cases as noted in their contracts by a third party without taking it to courts,” he explained.
Sri Lanka’s advantages as a arbitration venue stems from the geographical location with good air connectivity, peaceful and stable environment, long standing legal infrastructure, competent legal professionals and modern arbitration laws, widespread use of English language and acceptability as a neutral venue. The availability of tourism based activities such as leisure, sports and competitive hotel rates are also a plus point at a time when businessmen are likely to mix work with leisure. Sri Lanka is also a cost effective destination when compared to the likes of Singapore and Malaysia.
“Countries such as Malaysia have tapped in on our business,” de Alwis maintained. “All multi-million dollar construction contracts from China, Vietnam, Hong Kong, etc all go to Singapore and Malaysia. Even if we get 10% of these opportunities from the service sector, we will receive widespread benefits.”
In 2007 legal services in Hong Kong was estimated at 0.7% of the GDP with a value of $ 1.3 billion.
Sri Lanka would also do well to look in to new areas of arbitration as it aims to develop the industry. Arbitration in areas such as sports and Islamic finance is expected to grow in the coming years and local professionals should focus and study these areas for the future, he noted.
Strongly advocating the development of sports based arbitration here, de Alwis said: “Sportsmen all over the world do not have time to go to courts and issues are resolved through arbitration. You can have a court of arbitration for sports sitting anywhere. Sri Lanka is ideal to be a neutral venue for sports disputes.”
Governmental support is also needed for developing the sector in terms of infrastructure. “In Singapore and Malaysia this is a multimillion dollar industry and is strongly supported by the state (infrastructure) as it generates revenue for the country. What is important is that the state doesn’t interfere.” He stated that the Government of Malaysia is in fact funding a state-of-the-art centre at a cost of 50 million ringgits for the country.
De Alwis suggested that it is perhaps now time to look at developing a law of limited partnerships.
To promote arbitration further, it is also essential to have the business community on board – especially those in the import and export sector, Samaraweera added. Many are unaware of the manner in which contracts mention on dispute resolving until it’s too late, he said. “If there is an Arbitration Clause you cannot go to courts and must follow that specialised mechanism and resolve the dispute. If not properly advised you can face huge financial losses.”
He continued: “In my opinion, the business community is very keen on resolving their disputes fast and efficiently and to that extent we must modernise and make the dispute resolution system more effective. Must have a dispute resolving mechanism that generates confidence in investors. Efficiency of the law in resolving these disputes faster is important.”
Samaraweera assured that the matter of arbitration promotion will be brought up during the business sessions of CHOGM in November. “We expect a lot of investors to come in to the country with CHOGM. We will bring this up and tell the international community that we have a fully equipped arbitration process. It is important to promote Sri Lanka as a destination for arbitration.”
More Government support for the sector is expected in the future and SLNAC is also looking at facilitation programs to push BOI and other investment related organisations – governmental and non-governmental within Sri Lanka to promote arbitration and recognise arbitration so that foreign direct investors can come to Sri Lanka without fear.
