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Independent arbitration: Government trying to woo FDI

18 Sep 2021

  • National Arbitration Centre to be made independent
By Maheesha Mudugamuwa In a move aimed at attracting foreign direct investment (FDI) to the Colombo Port City (CPC) project over the next few years, the Government is planning to convert the Sri Lanka National Arbitration Centre (SLNAC) into an independent institution to facilitate arbitration and dispute resolution arising from international commercial agreements and other international affairs within the country. Ministry of Justice Secretary M.M.P.K. Mayadunne told The Sunday Morning that a Cabinet-appointed committee was currently reviewing the possibilities of establishing the centre, which is currently under the Ministry of Justice as a separate institution. According to him, there was high demand for an independent institution in Sri Lanka. Currently, the SLNAC is heavily dependent on the Singapore International Arbitration Centre for its arbitration and dispute resolution needs. Meanwhile, the Cabinet, in March last year, decided to continue the Sri Lanka International Arbitration Centre independently. The Cabinet also decided that provisions related to arbitration included in future agreements entered into by government institutions should state that arbitration activities should be carried out by the Sri Lanka International Arbitration Centre. The Sri Lanka International Arbitration Centre was established as a regional hub in 2012 for resolving disputes arising out of international commercial agreements and other international affairs. The Cabinet had also approved the establishment of the Sri Lanka International Arbitration Centre as a limited guarantee company in 2015, and accordingly, Sri Lanka International Arbitration Centre (Guarantee) Ltd. was incorporated in December 2016. An international arbitration centre is an institution that directs the arbitration arrangements of a country that arise from international agreements and relationships with other countries. The Government expects the new arrangements to address investor concerns about investing in Sri Lanka.


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