Construction arbitration in Sri Lanka

Abstract

In the process of dispute resolution, arbitration has been practised by commercial personnel over a long period. With the introduction of the Arbitration Act No. 11 of 1995, the process of arbitration has been refined and regularised in Sri Lanka. As the grounds for appeal in the Sri Lanka Arbitration Act are very limited, arbitration has become a popular way of resolving disputes. According to the Sri Lanka Arbitration Act, unless the parties agree otherwise, when an arbitration clause is incorporated into the contract, the jurisdiction of the court is denied. The procedure followed in Sri Lanka is a mostly ad hoc procedure. This is due to the fact that parties are reluctant to follow the institutionalised procedures as they are in some instances inconsistent with the Arbitration Act. There are three widely accepted procedures adopted in Sri Lanka and they are namely – document only, the short procedure and full procedure. The full procedure adopted in Sri Lanka is identical to the court procedure in Sri Lanka. It is important that arbitrators involved in arbitration must gain knowledge in construction law and technical knowledge in order to conduct arbitration successfully.