Recognition and Enforcement of International Settlement Agreements Act

In a landmark move, the Parliament of the Democratic Socialist Republic of Sri Lanka has enacted the Recognition and Enforcement of International Settlement Agreements Act, No. 5 of 2024, aimed at giving effect to the United Nations Convention on International Settlement Agreements Resulting from Mediation, commonly known as the Singapore Convention on Mediation.

Key Provisions:

1. Short Title and Commencement:
   • The Act may be cited as the Recognition and Enforcement of International Settlement Agreements Resulting from Mediation Act, No. 5 of 2024.
   • The provisions come into operation upon the Minister’s order, certifying the Convention’s entry into force in Sri Lanka.
2. Scope of Application:
   • Applies to international settlement agreements resulting from mediation, subject to specified reservations.
   • Excludes settlements related to consumer transactions, family matters, inheritance, employment matters, or those enforceable as judgments or arbitral awards.
3. Validity and Enforcement:
   • Every international settlement agreement is deemed valid and enforceable unless refused by the High Court.
   • The High Court can enter a decree for enforcement, treated similarly to a judgment.
4. Admissibility in Court:
   • International settlement agreements admissible as evidence in court proceedings to establish dispute resolution.
5. Application to the High Court:
   • Parties may apply to the High Court to have the agreement entered as a decree for enforcement.
   • The High Court may refuse if certain grounds, such as incapacity, nullity, or public policy concerns, are established.
6. Timeframe and Legal Process:
   • High Court hearings and final disposal within three months.
   • Specific legal procedures outlined for presenting evidence, translations, and submissions.

This groundbreaking legislation positions Sri Lanka at the forefront of promoting mediation for international dispute resolution, fostering harmonious economic relations on a global scale.

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