Sri Lanka must position itself as a collaborative partner rather than a direct competitor to global dispute resolution hubs like Singapore, leveraging its proactive judiciary to build a seamless regional arbitration ecosystem.
This strategic outlook was articulated by Avindra Rodrigo PC, Partner and Head of Litigation and Dispute Resolution at FJ&G de Saram, during a panel discussion at the inaugural session of the U. L. Kadurugamuwa Legacy Series, held in Colombo last week. The new thought leadership platform was launched by the law firm at the Hilton Colombo in its 185th anniversary year to honour its former Precedent Partner.
The discussion comes as Sri Lankan businesses increasingly turn to international arbitration to resolve commercial disputes; the Singapore International Arbitration Centre (SIAC) says it handled about eight cases originating from Sri Lanka in 2025, a steady rise it attributes to growing familiarity with international dispute resolution among local corporates.
“As far as Sri Lanka is concerned, Sri Lanka does not need to look at itself as a direct competitor to Singapore or SIAC. Rather, what Sri Lanka can do is work in harmony with SIAC and other international institutions—building a collaborative framework that benefits both jurisdictions and the legal fraternity practicing across the region,” Rodrigo said.
Underscoring the strong domestic legal foundation, Rodrigo said the local judiciary has long played a pioneering, supportive role by granting swift interim relief to preserve the subject matter of disputes before an arbitral tribunal is even constituted. Local courts recognised the need for urgent interim protection well before the concept gained widespread traction in other jurisdictions, he said.
“I had the opportunity to look at legislation in other jurisdictions, and quite frankly, well before this concept caught on elsewhere, our courts in the Avis case many, many years ago realized there was a lacuna, and there was a decision of court recognizing protection pending the constitution of the tribunal,” Rodrigo said.
This established framework allows parties to seek direct court intervention for urgent interim relief—an advantage, he said, over the two-step process required under certain institutional rules, where parties must first petition an emergency arbitrator and subsequently seek court enforcement.
“I’m happy to say that from the Commercial High Court onwards, it has been recognized and it provides much-needed support for arbitration,” he added.
Rodrigo stressed that court intervention focuses on maintaining the status quo rather than evaluating the substantive merits of the underlying dispute—a distinction he said is essential to communicate clearly to corporate clients.
“It is about preserving the subject matter of the dispute—it’s like ensuring you don’t allow the garage to destroy or take away the car while the dispute is pending,” he said.
Distinguishing between court-ordered protection and tribunal-led evaluations, Rodrigo noted that while arbitrators typically weigh a prima facie case and the balance of convenience, the Commercial High Court acts with speed to freeze and protect the subject matter. These judicial safeguards remain active only until the arbitral tribunal is formally constituted to assume control.
“Right now, the way we are looking at it, we are hoping the courts too will understand that by and large, they shouldn’t look at a prima facie case or get into the merits, which is for the arbitral tribunal to do,” he said.
While commending the practical efficacy of the existing legal mechanism, Rodrigo called for modernising statutory provisions to keep pace with evolving international standards. “So I think it’s working. I’m not saying that the statute doesn’t need proper amendment—I think yes, it does,” he acknowledged.
Corroborating the growing reliance of local businesses on international arbitration, Divya Arora, Deputy Head South Asia at SIAC, said the centre has seen a steady rise in disputes originating from Sri Lanka, handling about eight cases in 2025. She noted that SIAC’s Streamlined Procedure allows commercial disputes up to SGD 1 million—approximately Rs. 260 million—to be resolved by a sole arbitrator on a documents-only basis, with a final award due within three months of the tribunal’s constitution.
The inaugural session brought together a distinguished panel of experts from Allen & Gledhill, Rajah & Tann, and SIAC to explore practical challenges and effective strategies in commercial arbitration. Attended by members of the judiciary, legal practitioners, arbitrators, and corporate clients, the event marked the launch of a long-term platform dedicated to fostering professional legal dialogue and thought leadership.
