Section 62 establishes an International Commercial Dispute Resolution Centre within the Area of Authority. Disputes arising under an agreement or other legally binding document between the Commission and a resident or occupier are to be resolved by arbitration conducted by the Centre.
Section 62(3) requires every authorised person to ensure that each agreement it enters into under section 32 contains a provision mandatorily referring any dispute arising within the Area of Authority under that agreement to arbitration under the section. This is a drafting obligation on the investor, and it is one that is easy to breach by adopting a foreign-law template unchanged.
The Centre may make or adopt its own rules of procedure for conciliation, mediation, adjudication, arbitration and other alternative dispute resolution services — section 62(4). Enforcement or setting aside of an award made by the Centre is under the Arbitration Act, No. 11 of 1995 — section 62(5). Sri Lankan citizens and residents may serve in any capacity in its operations, as may internationally reputed professionals — section 62(6).
Note the interaction with Schedule III: the Commercial Mediation Centre of Sri Lanka Act, No. 44 of 2000 has no application inside the Area of Authority. A tiered clause that provides for mediation under that Act before arbitration is, to that extent, inoperative for Port City disputes.
