International Commercial Arbitration in a Global Economy: Where does Sri Lanka Stand?

Abstract

The development of trade, infra structure and business opportunities throughout the world has impacted and instigated alternative dispute resolution to be recognized as an essential means to resolve disputes among parties due to its many advantages over litigation. As Arbitration is the most popular alternative dispute resolution mechanism possessing the characteristics of being private and confidential in nature outside courts with quick results, it is no surprise that parties all over the world resort to alternative dispute resolution mechanisms like arbitration to resolve their disputes as a viable alternative. The great perplexity of arbitration is that it pursues the assistance of the very public authorities from which it wants to free itself.Therefore, one of the foremost problems in arbitration endures to be the strain that exists between courts and the arbitral process. The line demarcating the two processes are an intricate balance and while judicial support is fundamental, excessive intervention would diminish and disrupt the concepts such as party autonomy and efficient dispute resolution through arbitration. This research intends to analyze and determine the extent of court intervention at different stages of the arbitral process. The researcher further assesses and analyzes the provisions of the Arbitration Act No 11 of 1995, relevant case law, text books and articles in this area for the purpose of evaluating the extent of the involvement and intervention of courts in arbitral proceedings in Sri Lanka. The researcher will adopt black letter approach throughout the research. It is paramount to note that commercial arbitration in Sri Lanka too should take cognizance of the modifications and alterations and move forward towards the digital era, which would also succor in revitalizing the overall economy of the country. Confidence in the process of arbitration with its flexibility, relative speed and finality of decisions ensures growing reception globally of third-party adjudication of disputes. Dissemination of this concept might well turn out to be one of the most significant benefits of globalization. Hence, there is no skepticism that arbitration benefits from the multiculturalism of the world in which we live in, since it is the need to find a neutral system that fosters the resolution of conflicts through arbitration. There is no doubt that international business players benefit from the multicultural and flexible approach that arbitration provides, which would unswervingly impact on the economization and would be a sustainable adjudication strategy.