and institutions created and established, or recognised by the Constitution or created and
established by law.
The Parliament has established a number of arbitration and mediation bodies for certain
disputes. Arbitration Act No.11 of 1995 provides an arbitration mechanism to resolve disputes
in relation to commercial transactions. Mediation Boards Act No.72 of 1988 provides a
framework for Mediation Boards empowered to mediate claims less than Rs.25,000.00. The
Industrial Disputes Act No.43 of 1950 as amended provides for the resolution of labour
disputes by arbitration, conciliation and adjudication by labour tribunals. The Human Rights
Commission of Sri Lanka Act No.21 of 1996 provides for the resolution of complaints through
conciliation and mediation of complaints entertained by the Commission in relation to
fundamental rights violations and also to make recommendations; Agrarian Services Act No
58 of 1979 provides for the appointment of the Commissioner of Agrarian Services who shall
have the power of a District Court to hear and to decide any dispute referred to him under
this Act.
With respect to property disputes, claims for less than Rs25,000.00 can be heard by the
Mediation Board. This ceiling is far too low to cover the majority of property claims.
Moreover, we understand that both lawyers and claimants push their claims above the
current ceiling in order to have their claims heard in a court. The reason for this is that, where
disputes involve complex interpretation of the law, parties would prefer the dispute to be
heard by a legally-qualified body so that they do not compromise their legitimate legal
rights and claims. In the past, the Ministry of Justice has unsuccessfully attempted to
increase the ceiling set by the Mediation Boards Act with the aim of resolving more disputes
through the process of mediation. This attempt failed due to opposition from members of
the legal community and the public. We do not believe that an increased ceiling would be
a solution as Mediation Board members do not have the adequate legal training and
technical knowledge to resolve property disputes.
The Ministry of Justice is now in the process of drafting legislation to establish Special
Mediation Boards. Special Mediation Boards will have jurisdiction in respect of certain
categories of disputes specified by the Minister by regulation (e.g. All disputes relating to
secured or unsecured debts, all disputes relating to environmental issues, etc.). The
members of Special Mediation Boards, like those appointed to the Mediation Boards, will be
respected members of the community. They will not be persons trained in the law.
Based on the views expressed by the Legal Aid Foundations of the conflict affected arias
and the discussions we have held with lawyers and members of the judiciary. We
recommend the establishment of a separate dispute resolution body to determine propertyrelated disputes in the conflict-affected areas. The number of bodies and the location of
the sittings would depend on the number of claims.
The body should comprise no less than two legally-qualified members, possibly retired judicial
officers, appointed by the Judicial Services Commission for a specified period. Officers
(preferably a degree holder or an equally qualified person) should be appointed for the
purpose of recording the claims and making a report to the body. Qualified persons are
recommended for this purpose to do away with the added expense and delay involved in
representation on behalf of parties.
In these proceedings the parties should not be
permitted to be represented unless the party is a minor, ill, old or unable to attend without
reasonable delay or expenses. Complaints to the body should be made by a party in
person who claims the right, title or interest orally or in writing. In addition, the body itself
should be empowered to initiate inquiries to settle disputes.
The alternative dispute resolution body should have the authority to resolve all property
disputes irrespective of the value of the claim as well as the authority to issue interim orders
for relief, and to recommend alternative accommodation, land or compensation. The
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