Doing Business In..._2026

SRI LANKA Law and Practice Contributed by: Ayanthi Abeyawickrama, Varners

1. Legal System 1.1 Legal System and Judicial Order Legal System

ern Province in Colombo has special original jurisdic - tion in: • commercial matters, within the Western Province, where the value in dispute exceeds LKR50 million; • applications under the Companies Act, No 07 of 2007 (including winding-up, derivative actions, etc); • matters arising under the Securities and Exchange Commission of Sri Lanka Act, No 19 of 2021; and • all proceedings under the Intellectual Property Act, No 36 of 2003, including infringement actions and cancellation of registrations. The High Court of the Republic is vested with original criminal jurisdiction to try serious offences commit - ted within Sri Lanka’s territorial waters, including acts of piracy, marine pollution, illegal fishing, and unlaw - ful acts against maritime navigation. It also exercises admiralty jurisdiction under the Admiralty Jurisdiction Act, No 40 of 1983, enabling it to adjudicate maritime claims including those related to ship arrests, cargo disputes, collisions, salvage, crew wages and ship mortgages. The District Courts are courts of first instance for all civil matters, including family law, succession, con - tract disputes, delict, taxation and land cases. Small Claims Courts have jurisdiction over minor civil claims not exceeding LKR2 million and have simplified proceedings to reduce caseloads in District Courts. Magistrates’ Courts exercise original criminal jurisdic - tion over summary offences and minor statutory viola - tions. In addition, they are vested with non-summary jurisdiction to conduct preliminary inquiries in respect of indictable offences that are to be tried before the High Courts of the Provinces. These inquiries are con - ducted to determine whether there is sufficient evi - dence to commit the accused for trial. Primary Courts exercise limited original jurisdiction in both civil and criminal matters. Their jurisdiction extends to offences under local government laws and by-laws enacted by Municipal Councils, Urban Councils and Pradeshiya Sabhas. In addition, they are empowered to hear disputes relating to the posses -

Sri Lanka has a hybrid legal system that draws from multiple legal traditions, including Roman Dutch law, English common law, statutory law and customary laws (such as Kandyan, Tesawalamai and Muslim personal laws). This pluralistic structure is a result of the country’s colonial history and its diverse cultural and ethnic make-up. While Roman-Dutch law remains the foundation of the common law, especially in private law matters, English common law principles influence areas such as com - mercial law, criminal procedure, evidence, administra - tive law and constitutional interpretation. In addition to written laws, Sri Lanka recognises the doctrine of judicial precedent, whereby decisions of the Supreme Court, as the highest court of the land, are binding on all lower courts. Decisions of the Court of Appeal are also binding on subordinate courts, though not on the Supreme Court or the Court of Appeal itself. Judicial Order Sri Lanka’s court system is hierarchical and consti - tutionally established, with specialised jurisdictions allocated across various tiers of courts. The Supreme Court of the Democratic Socialist Republic of Sri Lanka is the apex court and exercises constitutional jurisdiction, final appellate jurisdiction, writ jurisdiction in limited matters, supervisory jurisdic - tion, and original jurisdiction in respect of fundamental rights under the Constitution. The Court of Appeal has both appellate jurisdiction and writ jurisdiction, hearing appeals from the High Court of the Republic, and entertaining applications for writs such as certiorari, mandamus, prohibition, quo warranto and habeas corpus under the Constitu - tion. Each High Court of the Provinces exercises appellate and revisionary jurisdiction over all courts and tribu - nals within their respective province, and are vested with writ jurisdiction in terms of Article 154P of the Constitution. In addition, the High Court of the West -

1000 CHAMBERS.COM

Powered by