A total of 25 leading companies last week took the ‘Corporate Mediation Pledge’ under a ground breaking initiative of the International ADR Centre (IADRC) boosting the alternate resolution mechanism in the country.
The pledge to consider mediation as their preferred method of resolving disputes was made at a ceremony at the Port City Colombo which reflected a growing movement away from the traditional adversarial nature of litigation and towards a more collaborative approach to resolving commercial disputes.
This shift comes following the introduction of the Mediation (Civil and Commercial Disputes) Act No. 13 of 2026, which came into operation in June 2026. The legislation represents an important development in Sri Lanka’s legal system by recognising mediation as a legitimate method of resolving high-value civil and commercial disputes.
For businesses, the introduction of this framework creates a new pathway to resolve commercial disputes in a manner that is confidential, collaborative and focused on achieving practical outcomes. Unlike traditional dispute resolution processes that can often result in prolonged proceedings, mediation enables parties to engage directly, explore mutually acceptable solutions and preserve important commercial relationships that may otherwise be affected by conflict.
Speaking at the ceremony IADRC Sri Lanka Chairman Dr Kanag-Isvaran PC highlighted some of the key advantages mediation can offer businesses compared with litigation. He explained that ‘mediation focuses on interests rather than rights’, allowing the parties themselves to have a greater say in how their dispute is resolved. Rather than having an outcome imposed upon them by a court, mediation gives the parties an opportunity to reach a solution that works for both sides.
This was followed by the Corporation Mediation Pledge, during which representatives from 25 corporations formally signed the pledge. Their participation demonstrated a willingness among Sri Lankan businesses to explore mediation as a practical alternative to litigation and to embrace a different approach to resolving disputes.
Singapore International Mediation Centre Director Siong Koon Sim gave a presentation on the development of mediation in Sri Lanka. He traced its progression from the Mediation Boards Act of 1988 to the introduction of the 2026 legislation, placing Sri Lanka’s development within the wider international movement towards mediation. He also highlighted the growing use of mediation internationally, noting that it can provide a simpler way of resolving disputes while helping to ‘preserve relationships’.
The event also included a panel discussion featuring Siong Koon Sim; Andre Yeap SC, Senior Partner at Rajah and Tann, Singapore; Ang Leong Hao, Partner at Rajah and Tann, Singapore; Nusry Hussain, Counsel at the Singapore International Arbitration Centre; and Ramesh Selvaraj, Partner at Allen and Gledhill, Singapore.
A central theme of the discussion was the practical value of mediation for businesses. The panellists discussed how mediation can be faster and less expensive than litigation, while also giving the parties more control over the eventual outcome. This is particularly important in commercial disputes, where maintaining a business relationship can sometimes be just as important as resolving the dispute itself.
Andre Yeap SC captured this idea when he stated that ‘a reasonable settlement is better than a hard fought battle’. He also referred to the ability of mediation to ‘bridge the gap where the gap can be bridged’. His comments highlighted that reaching a sensible settlement can sometimes be more beneficial than spending significant amounts of time and resources pursuing a lengthy legal battle.
Ramesh Selvaraj similarly described mediation as a ‘safe room’ in which parties can openly discuss their concerns and ideas in a confidential and without-prejudice environment. He explained that mediation is ‘meant to be less formal’ than court proceedings, which gives the parties greater freedom to discuss possible solutions and take responsibility for reaching an outcome.
The discussion also considered the potential impact of mediation on foreign investment. Nusry Hussain pointed out that reducing the costs and risks associated with commercial disputes could make Sri Lanka more attractive to foreign investors. Greater confidence in the country’s dispute-resolution framework could therefore have implications beyond individual disputes and contribute to the wider business environment.
The Corporate Mediation Pledge Ceremony was supported by The Asia Foundation, with Colombo Port City serving as the venue partner.