Sri Lanka will set up a new High Court for investment disputes for large investors in as well as a new arbitration law for foreign investors amid long delays in getting decisions in the court system of the island.
The cabinet of ministers had given the go ahead of to draw up a Investment Disputes High Court Act under proposals made by Commercial Law Reform Subcommittee operating under a special unit of the Ministry of Justic.
The Investment Disputes Tribunal will hear and decide the cases related relating to amounts of 50 million rupees arising out of an initial investment of 100 million or more.
Sri Lanka will also enact a new arbitration law.
“The Committee further recommended the need to impose provisions in the proposed Act to address existing barriers at the arbitration stage as well as at the enforcement stage of arbitration decisions to enable large scale domestic and foreign investment in Sri Lanka,” a government statement said.
The legal draftsman had been given the go ahead to draw up the law.
