Mediation In
Ambatenna, Kandy

Legal Framework

Mediation in Sri Lanka follows the Mediation Boards Act No. 72 of 1988, which provides for the establishment of Mediation Boards and the Mediation Boards Commission. The Commercial Mediation Centre of Sri Lanka (CMCSL) was established under the Commercial Mediation Centre of Sri Lanka Act (No. 44 of 2000). On 10 January 2024, Parliament passed the Recognition and Enforcement of International Settlement Agreements Resulting from Mediation Act No. 5 of 2024 to give effect to the Singapore Convention, which came into force in Sri Lanka on 28 August 2024. This Act enables enforcement of international mediated settlement agreements in Sri Lankan courts and aligns Sri Lanka with international mediation standards. On 26 March 2024, Parliament passed the Mediation Board (Amendment) Act, No. 2 of 2024, which restructured the Mediation Board Commission composition and governance. The amendments provide for a more diverse and professional governance structure with enhanced representation of different sectors. On 11 July 2025, Parliament presented the Mediation (Civil and Commercial Disputes) Bill to establish a comprehensive domestic mediation framework. The Bill provides statutory recognition to mediation as a dispute resolution option that can be voluntarily selected by parties, and establishes a governance regime to ensure mediations are conducted in compliance with globally accepted standards. The Bill aligns domestic practices with international standards and will repeal the Commercial Mediation Centre of Sri Lanka Act No. 44 of 2000 upon enactment. Arbitration follows the Arbitration Act of Sri Lanka, which incorporates the New York Convention.

While Sri Lanka operates under this legal framework, The Olive Branch's remote mediators bypass local court backlogs by providing swift, confidential, and mutually agreed-upon resolutions online.

Court System

The Mediation Boards Commission has policy and administrative support from the Ministry of Justice. Where a Panel has been appointed for a Mediation Board area, no proceeding in respect of any dispute arising wholly or partly within that area or an offence alleged to have been committed within that area shall be instituted in or entertained by any court of first instance without a certificate of non-settlement from the Mediation Board. The new Mediation (Civil and Commercial Disputes) Act 2025 provides that courts can refer disputes to mediation at their discretion on consideration of all circumstances and if considered appropriate, without compulsion on parties to settle against their will. The law provides that a mediated settlement agreement can be set aside on specific limited grounds including offensive to public policy. The law also provides for obtaining a decree of court based on the terms of a settlement agreement. For arbitration, where a party to an arbitration agreement institutes legal proceedings in a court against another party, the Court shall have no jurisdiction to hear and determine such matter if the other party objects.

Mediator Regulations

The Mediation Boards Commission is responsible for appointing, transferring, dismissing and exercising disciplinary control over Mediators. The Commission supervises and controls the performance and discharge by Mediators of their duties and functions under the Act and issues necessary directions. Persons eligible for appointment to any Panel of Mediators include: (a) any person resident in a Mediation Board area or engaged in any work in that area; (b) any person resident or engaged in work outside such area if the Commission decides in exceptional circumstances; and (c) any public officer nominated by the Government Agent of the administrative district within which such Mediation Board area is situated. Within a 30-year span, Sri Lanka has equipped the nation with 329 Community Mediation Boards with over 8,500 active volunteer Mediators across the country. The Commercial Mediation Centre of Sri Lanka has a Board with members nominated by various organisations including the Federation of Chambers of Commerce and Industry of Sri Lanka, the Ceylon National Chamber of Industries, and the Minister in charge of the subject of Justice. Board members serve three-year terms and are eligible for reappointment.

Cultural Approach

Sri Lanka has a long history of mediation dating back to ancient kingdoms where adults and monks acted as mediators and carried out community mediation at village councils. This cultural tradition of community-based dispute resolution continues through the modern Mediation Boards system. The approach emphasises community mediation as an effective and scalable low-cost justice solution. The mediation process empowers parties to resolve disputes by negotiating concrete and mutually satisfactory agreements with the help and guidance of skilled mediators. The presence of over 8,500 active volunteer mediators across 329 Community Mediation Boards indicates strong community participation and cultural acceptance of mediation. The system addresses land issues, family disagreements, financial disputes and minor offences, reflecting a holistic approach to community conflict resolution that respects traditional values while operating within a modern legal framework.

Typical Costs

Community mediation through Mediation Boards is designed as a low-cost justice solution. Every application to a Mediation Board must be accompanied by a document evidencing the fact that the prescribed fee has been paid in the prescribed manner. Specific fee amounts are not detailed in available sources. The Commercial Mediation Centre of Sri Lanka operates with its own Fund, which receives sums voted by Parliament, sums received in the exercise of its powers and functions, and loans, donations, gifts or grants from local or foreign sources. The Centre's accounts are audited under Article 154 of the Constitution. The emphasis on community mediation as a low-cost justice solution suggests accessibility and affordability for users. No specific hourly or daily rates for private mediation are documented in available sources.