Sri Lankan businesses with disputes can look to Singapore for arbitration

OVER the last 15 years, Sri Lanka has recorded average economic growth of about 6 per cent per annum. In particular, the country has seen a significant surge in its import and export activities, and this cross-border trade demands a fast and cost-effective dispute-resolution mechanism.

While litigation remains the primary and traditional way of resolving disputes between commercial parties, Sri Lanka's record of handling commercial disputes, unfortunately, leaves a lot to be desired. The process in Sri Lanka is known to be costly and time-consuming. Many distressed investors have been forced to pursue out-of-court settlements in the hope of achieving a speedier resolution.

Arbitration is thus becoming widely recognised among commercial investors as the most preferred form of resolution for cross-border disputes. Preference for arbitration is often premised on a number of benefits, including the privacy and confidentiality of arbitral proceedings, and the finality and ease of enforcement of arbitral awards.