Mediation (Civil and Commercial Disputes) Act 2026 · As enacted
7. Reference to mediation by court
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
A court in which an action with regard to any dispute has been filed may, at its discretion upon consideration of all relevant circumstances, determine whether it is appropriate to refer the dispute or any part thereof for settlement by mediation and shall, if so determined, make order referring the dispute or part thereof to mediation administered by a
Mediation Service Provider selected by the parties.
The Mediation Service Provider to whom the dispute is referred in terms of subsection (1), shall take steps to appoint a mediator in compliance with the applicable rules and have the mediation concluded within sixty days from the date of receipt of the order of court.
Where during a mediation, it appears that the mediation will not be able to be completed within the period of time referred to in subsection (2) and the mediator and the parties are of the opinion that there are prospects for settlement and wish to continue the mediation beyond such period of time, the Mediation Service Provider shall be informed accordingly and the parties shall make an application to court requesting a further period that shall be specified, to complete the mediation and the mediator shall proceed with the mediation.
Upon the expiry of the further period of time granted by court under subsection (3), the parties or the
Mediation Service Provider as the case may be, shall proceed in compliance with subsection (5) or (6) as applicable.
Where upon such a referral made by court, a
Settlement Agreement is entered into pursuant to mediation, the Settlement Agreement together with the documents referred to in section 23 shall be filed in court by the parties and the terms thereof shall be entered as a decree of court, unless a party to the Settlement Agreement establishes that a decree shall not be entered on any ground set out in section 26 in which event, the court shall proceed to hear and determine the matter as if no settlement was reached.
Where upon such a referral made by court, a settlement is not reached, the Mediation Service Provider shall report to court accordingly, and if a settlement was not possible due to the absence of a party, shall state such fact giving details of notices sent to such party and the dates of absence of such party, whereupon the court shall proceed to hear and determine the matter.