There are a large number of unresolved disputes in the Sri Lankan construction industry. As the SME sector cannot afford to undertake lengthy and costly legal processes the Ceylon Institute of Builders (CIOB) has ventured to set up a mediation centre to provide services to the SME sector and supply chain stakeholders, said CIOB President Dr. Rohan Karunaratne.
He was speaking at a meeting between the CIOB and USAID officials recently.
Dr. Karunaratne said, “Some of our experts in mediation, such as Prof. Chitra Weddikara, Thilak Kolonne and Lalith Rathnayake have taken the lead in the launch of the CIOB mediation centre.”
USAID conducted a workshop ‘Express Training on Mediation’ outlining the setting up of a system and procedure for mediation in Hambantota recently where construction industry officials gained clarity on Alternative Dispute Resolution (ADR) instead of merely following the conventional legal system.
USAID has assured support for the CIOB mediation centre, training by foreign experts, and the conducting of an awareness program on alternative dispute resolution.
The construction industry is one of the largest industries in Sri Lanka.
The social impact of the financial issues in this partially halted industry can be attenuated to a large extent by ADR. In 2020, the Sri Lankan construction industry had a backlog of 800,000 cases in the judicial system.
The USAID program aims to reduce this backlog, help those unable to undertake judicial procedures, and provide more informal and detailed dispute resolution mediums.