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US to bring about consensus among SL companies on commercial mediation
… in line with backing for justice sector
The USAID had assisted eight Sri Lankan business conglomerates to reach a consensus on commercial mediation, the US Embassy announced yesterday (19).
“Eight Sri Lankan business conglomerates have signed agreements to pursue commercial mediation to settle disputes as opposed to always using litigation, a move that will help make the Sri Lankan judicial system more efficient and effective by reducing case backlogs,” the USAID has said in a media statement.
“The USAID assisted with development of a memorandum of understanding the eight companies individually signed on Tuesday, July 18, with USAID’s Effective and Efficient Justice (EEJ) activity. The agreements enable the companies to receive commercial mediation training, exposure to international-standard mediation and commercial mediation services and encourages the companies to incorporate a mediation clause into their corporate contracts.
“Commercial mediation is a viable alternative dispute resolution (ADR) mechanism that also will help promote investments and commercial development in Sri Lanka.
“Nations Trust Bank PLC, Tudawe Brothers (Pvt) Ltd., AKK Engineering, Nawaloka Constructions, Dilmah Ceylon Tea Company, Maga Engineering (Pvt) Ltd., Ranasinha Constructions, and MAC Holdings signed their agreements at a ceremony held at Cinnamon Grand Hotel, Colombo.
“The partnerships are part of the commercial mediation pilot programme launched by USAID under its EEJ activity. The activity provides training in commercial mediation and other ADR methods for these companies through workshops facilitated by international mediation experts. To improve ADR services in Sri Lanka, the project also trains ADR centers in mediation center management and administration.
“By helping adopt international best practices in case management and court management, and also by improving legal education and promoting and facilitating the use of ADR mechanisms, we hope to see reduced case delays and court backlogs, and promote the principles of people-centered justice,” said Ali Ezzatyar, USAID Acting Mission Director. “We believe that a strong justice system not only ensures the rule of law, but provides easy access.”
“Since 2021, USAID’s Efficient and Effective Justice Activity has been helping to equip the justice sector with international best practices, systems, and tools.”
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Approval has been granted at the Cabinet meeting held on 22.07.2024 to publish the draft bill of State Assets Management Act in the government gazette notification and thereby present it to the Parliament for its concurrence.
However, the draft bill couldn’t be passed in Parliament as a result of the Parliament being dissolved in the month of October 2024.
Thereafter, the draft bill was subject to further inspection by a
committee appointed which comprised of officials and authorities on the subject.
The said Committee has recognized the amendments to be made and a fundamental draft has been prepared including the proposed amendments.
Accordingly, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to suspend further activities regarding the draft bill of State Assets Management Act published in the extraordinary gazette of 02.08.2024, and to direct the Legal Draftsman to prepare a draft bill based on the fundamental draft prepared by the subject specialists’ committee.
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Accordingly, the Cabinet of Ministers granted approval to the resolution furnished by the Minister of Trade, Commerce, Food Security and Cooperative development to provide instructions to the Legal draftsman to prepare a draft bill to amend the Cooperative Employees Commission Act No. 12 0f 1972, based on the said fundamental draft.
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