New Arbitration centre will help reduce delays in the arbitration process
View(s):One of the main reasons for Sri Lanka to have a low ranking in the Ease of Doing Business Index is the considerably long time taken as a result of case delays for contract enforcement, says Justice Minister Thalatha Atukorale.
Speaking at the launch of a branch of the Chartered Institute of Arbitrators, London (CIArb), the most renowned institution for arbitrator training in the world, on Wednesday in Colombo, she said that this is why arbitration is the preferred means of dispute resolution among businessmen.
Apart from the advantage of expediency, arbitration is also attractive because of its relative informality, confidentiality of proceedings and cost-effectiveness.
The event was held in the presence of Chief Justice Jayantha Jayasuriya, British High Commissioner James Dauris, other judges, former Attorney General Yuvanjan Wijayatilake and CIArd Director General Anthony Abrahams.
She said arbitration has been practiced in Sri Lanka for a long time to resolve commercial disputes, but it has not taken place in a systematic manner. “Further arbitration has not delivered as an expeditious method of resolving commercial disputes and therefore has not realised the objectives that it set out to achieve,” she added.
The Minister said that the present government has duly recognised the need to overcome existing deficiencies of the laws, whilst being conscious about the need to improve the ease of doing business. “We have embarked upon drafting new legislation to fill the gaps in the existing commercial laws – a few laws have already been passed and several others are in the pipeline. In terms of judicial reforms, more courts have been established, more judges have been appointed, and facilities in the existing courts have been improved in order to eventually make the justice system work more efficaciously. The ultimate goal of these reforms is to make Sri Lanka more attractive for doing business and investments,” she added.
Mr. Wijayatilake, who is also the Patron of the Sri Lanka branch, said that there are inordinate delays associated with both the conclusion of arbitration proceedings and the enforcement of arbitral awards.
He said arbitration has not proved to be a method by which disputes are resolved expeditiously. The inherent delays associated with the arbitration proceedings have in fact made businessmen at times prefer litigation over arbitration. “Arbitration sittings have become limited to a few hours per month and thereby the time taken to give an award and grant relief to parties lingers unreasonably. While it must be appreciated that in the recent past, more and more arbitral tribunals allow witness statements to be filed, obviating the need for an examination in chief, the tendency to have lengthy cross examinations of witnesses have resulted in unwarranted extension of the arbitration hearings,” he added.
The delays in the arbitration proceedings, he added, are augmented by the subsequent delays in enforcing the arbitral award through courts. The gamut of procedural challenges and undue delays associated with litigation result in the enforcement proceedings getting dragged on, he added.