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Aug 22, 2025 - 0 Minutes read

Alternative Dispute Resolution: Mediation and Conciliation in Sri Lanka

In the bustling corridors of Sri Lanka's judicial system, where traditional litigation often stretches across years and drains both financial and emotional resources, a quiet revolution has been gaining momentum. Alternative Dispute Resolution (ADR), particularly mediation and conciliation, has emerged as a beacon of hope for parties seeking swift, cost-effective, and amicable solutions to their disputes. As civil lawyers in Sri Lanka increasingly recommend these mechanisms to their clients, the island nation is witnessing a fundamental shift in how conflicts are resolved, moving away from adversarial courtroom battles toward collaborative problem-solving approaches.

The concept of ADR is not entirely foreign to Sri Lankan culture, where community elders and respected figures have traditionally mediated disputes within villages and extended families for centuries. However, the formal institutionalisation of mediation and conciliation represents a modern evolution of these age-old practices, adapted to meet the complex needs of contemporary legal disputes. This transformation has been particularly significant in a country where court backlogs and lengthy proceedings have long been persistent challenges in the administration of justice.

The Legal Framework and Evolution

Sri Lanka's journey toward embracing formal ADR mechanisms began earnestly in the 1990s, with the recognition that traditional litigation alone could not adequately serve the diverse dispute resolution needs of a developing nation. The Mediation Boards Act No. 72 of 1988 marked a pivotal moment in this evolution, establishing a network of community-based mediation boards throughout the country. These boards were designed to handle minor disputes at the grassroots level, preventing them from escalating into costly and time-consuming court proceedings.

The success of these early initiatives paved the way for more comprehensive ADR frameworks. The establishment of the Commercial Mediation Centre in Colombo and similar institutions across the country provided specialised venues for resolving business disputes, while the integration of mediation provisions into various pieces of legislation demonstrated the government's commitment to promoting alternative dispute resolution mechanisms.

What makes Sri Lanka's approach particularly noteworthy is its blend of formal legal structures with traditional cultural practices. The system recognises that effective dispute resolution must resonate with local values and customs while maintaining the procedural integrity necessary for fair and enforceable outcomes. This cultural sensitivity has been crucial in gaining public acceptance and trust in ADR processes.

Understanding Mediation in the Sri Lankan Context

Mediation, as practiced in Sri Lanka, involves a neutral third party who facilitates communication between disputing parties to help them reach a mutually acceptable solution. Unlike a judge or arbitrator, a mediator does not impose a decision but rather guides the parties through a structured process of dialogue and negotiation. This approach has proven particularly effective in a society where preserving relationships and maintaining harmony are deeply valued cultural principles.

The mediation process in Sri Lanka typically begins with the mediator explaining the ground rules and ensuring that all parties understand their roles and responsibilities. Confidentiality is a cornerstone of the process, encouraging open and honest communication without fear that statements made during mediation will be used against them in subsequent legal proceedings. This protection has been instrumental in building confidence in the system, particularly among business communities where reputation and ongoing relationships are paramount.

One of the most significant advantages of mediation in Sri Lanka has been its accessibility. Law firms in Sri Lanka have increasingly integrated mediation services into their practice areas, making these alternatives readily available to clients across various socioeconomic backgrounds. The relatively informal nature of mediation proceedings, combined with the flexibility to conduct sessions in local languages, has democratised access to effective dispute resolution mechanisms.

The commercial sector has been particularly receptive to mediation, with many businesses recognising that preserving commercial relationships often trumps the satisfaction of winning a court case. International businesses operating in Sri Lanka have also embraced mediation as a culturally appropriate and efficient means of resolving disputes with local partners, suppliers, and customers.

Conciliation: A Complementary Approach

While mediation focuses on facilitated negotiation, conciliation in Sri Lanka takes a slightly more interventionist approach. Conciliators not only facilitate communication but may also suggest possible solutions and provide expert opinions on the merits of various settlement options. This approach has proven particularly valuable in technical disputes where specialised knowledge is required to understand the issues at stake.

The conciliation process often begins with each party presenting their case to the conciliator, who then works with them individually and collectively to identify common ground and potential solutions. The conciliator's role may include evaluating the strengths and weaknesses of each party's position and providing reality checks about likely outcomes if the dispute were to proceed to formal litigation.

This more evaluative approach has made conciliation particularly popular in construction disputes, intellectual property matters, and other areas where technical expertise can significantly inform the resolution process. Many attorneys in Sri Lanka have developed specialised skills in conciliation, recognising that their legal expertise combined with conciliation training can provide immense value to clients seeking pragmatic solutions to complex disputes.

Benefits and Practical Advantages

The advantages of mediation and conciliation in Sri Lanka extend far beyond mere cost savings, though the financial benefits are substantial. Traditional litigation can consume years and involve significant legal fees, court costs, and indirect expenses such as lost productivity and management time. In contrast, most mediation and conciliation processes are completed within weeks or months, allowing parties to resolve their disputes and move forward with their lives or businesses.

Privacy represents another crucial advantage, particularly in a relatively small business community where reputation can make or break commercial relationships. Court proceedings are generally public, and judgments become part of the public record, potentially exposing sensitive business information or personal matters. ADR processes, by contrast, are confidential, allowing parties to resolve their disputes without public scrutiny.

The flexibility inherent in ADR processes has also proven invaluable. Unlike court proceedings, which are bound by strict procedural rules and legal remedies, mediation and conciliation can accommodate creative solutions that address the underlying interests and needs of all parties. This flexibility has led to innovative settlements that would be impossible to achieve through traditional litigation.

Perhaps most importantly, ADR processes often preserve and even strengthen relationships between disputing parties. Rather than creating winners and losers, successful mediation and conciliation create collaborative solutions where all parties can claim victory. This outcome is particularly valuable in family disputes, commercial partnerships, and community conflicts where ongoing relationships are essential.

Challenges and Areas for Improvement

Despite its many successes, the ADR system in Sri Lanka faces several challenges that limit its potential impact. One significant barrier is the lack of awareness among the general public about the availability and benefits of these processes. Many individuals and businesses still view court litigation as the default option for dispute resolution, unaware of the alternatives available to them.

The quality and consistency of ADR services across the country also present ongoing challenges. While the best law firms in Sri Lanka have invested heavily in training their lawyers in mediation and conciliation skills, the availability of high-quality ADR services varies significantly between urban and rural areas. This disparity can limit access to effective dispute resolution mechanisms for those who need them most.

Another challenge lies in enforcement mechanisms. While mediated settlements are generally binding, the processes for enforcing them can sometimes be unclear or inconsistent. Strengthening these enforcement mechanisms would enhance confidence in ADR processes and encourage greater utilisation.

Cultural barriers also persist in some contexts. Despite Sri Lanka's traditional emphasis on harmony and consensus-building, some parties remain sceptical of processes that require them to compromise or appear to back down from strongly held positions. Overcoming these attitudes requires continued education and demonstration of the practical benefits of collaborative dispute resolution.

The Future of ADR in Sri Lanka

Looking toward the future, the prospects for ADR in Sri Lanka appear bright. The government has demonstrated continued commitment to expanding and improving these systems, while the legal profession has increasingly embraced ADR as an integral part of comprehensive legal services. Technological advances, including online mediation platforms, promise to make these services even more accessible and efficient.

The COVID-19 pandemic has accelerated the adoption of virtual ADR processes, breaking down geographical barriers and making it easier for parties to participate in mediation and conciliation sessions. This technological evolution is likely to persist, making ADR services more convenient and cost-effective for users across the country.

Educational initiatives are also expanding awareness and understanding of ADR processes. Law schools are incorporating ADR training into their curricula, while continuing education programs are helping practicing lawyers develop the skills necessary to effectively serve their clients through these mechanisms.

The integration of ADR into various sectors continues to deepen, with specialised programs emerging for construction disputes, commercial conflicts, family matters, and community issues. This specialisation allows for more targeted and effective dispute resolution approaches that address the unique characteristics and needs of different types of conflicts.

Final Thoughts

Alternative Dispute Resolution through mediation and conciliation has established itself as a vital component of Sri Lanka's legal landscape. By combining cultural sensitivity with procedural innovation, these mechanisms offer parties effective alternatives to traditional litigation while preserving the relationships and values that are central to Sri Lankan society.

The success of ADR in Sri Lanka demonstrates that effective dispute resolution systems must be grounded in local culture and values while maintaining the integrity and fairness necessary for sustainable justice. As awareness grows and systems continue to evolve, mediation and conciliation are poised to play an increasingly important role in Sri Lanka's pursuit of accessible, efficient, and equitable justice for all its citizens.

The journey toward a more comprehensive and effective ADR system continues, with ongoing efforts to address existing challenges while building on the solid foundation that has already been established. For a nation that values harmony and consensus, alternative dispute resolution represents not just a practical solution to court congestion, but a return to fundamental cultural values adapted for the modern world.