August 28, Colombo (LNW): A significant legislative step towards modernising dispute resolution in Sri Lanka has been taken with the approval of a new Mediation Bill, aimed at enhancing the handling of civil and commercial disagreements through structured mediation processes.
The proposal received the green light from the Sectoral Oversight Committee on Governance, Justice and Civil Protection during a recent session held in Parliament under the chairmanship of MP Najith Indika.
The draft legislation seeks to address long-standing gaps in the country’s legal framework related to mediation, following the failure to effectively implement the Commercial Mediation Centres Act No. 44 of 2000.
Officials from the Ministry of Justice and National Integration explained that the original Act, though well-intentioned, proved impractical due to various procedural shortcomings and lacked the necessary legal mechanisms to enforce outcomes.
The new Bill has therefore been introduced to repeal the outdated law and replace it with a more robust legal structure. Amongst its key aims is the establishment of minimum standards for mediation practice and the formal recognition of mediated settlements within the judicial system.
These provisions are intended to strengthen public trust in mediation as a credible and enforceable alternative to litigation.
Although the current legal environment acknowledges mandatory mediation in certain contexts, voluntary mediation has yet to gain significant traction. Ministry representatives told the Committee that one of the primary challenges lies in the absence of a clearly defined legal framework for voluntary mediation—especially in cases where disputes are referred without prior agreement between parties, or where courts recommend mediation as a solution.
To address this, the proposed legislation outlines procedures for engaging in mediation both by mutual consent and upon judicial suggestion, ensuring that mediated outcomes are not only recognised by law but also protected by statutory regulation.
The Bill further seeks to normalise mediation as a first line of resolution in business and civil matters, ultimately reducing the burden on courts and encouraging more collaborative dispute settlement.
With the groundwork now laid in Parliament, the proposed Mediation (Civil and Commercial Disputes) Bill is expected to move forward for further legislative consideration.
