What remedies are available in Sri Lanka for breach of a supply contract with a local manufacturer?

Hello

Thank you for reaching out regarding your supply contract concerns with the Sri Lankan manufacturer. You have several legal remedies available under Sri Lankan law for breach of contract—especially for missed deadlines and substandard goods.

Remedies for Breach of Supply Agreement
Damages: You may claim compensation for financial loss resulting from delay or poor quality. Damages can cover actual losses and, in some cases, consequential losses depending on contract terms and proofs.

Specific Performance: Courts in Sri Lanka can order the manufacturer to fulfill the contractual obligations if damages alone would not provide adequate remedy, provided performance is possible and reasonable.

Injunction: If you need urgent relief (such as stopping the manufacturer from further deliveries of substandard goods), an injunction can be sought through the courts.

Dispute Resolution: Court vs. Arbitration
Court: You can file a formal claim through Sri Lankan courts. Judges will assess the contract and evidence for breach.

Arbitration: If your contract contains an arbitration clause, or both parties agree to arbitrate, disputes can be resolved privately—often faster and more cost-effective than court action. Arbitration awards are enforceable under Sri Lankan law.

Time Limit for Filing Claims
In Sri Lanka, the standard limitation period for contract claims is six years from the date of breach, but prompt action is recommended.

Hello Mohammad,

Depending on the terms of the contract legal proceedings could be instituted seeking damages. Are you awrae of assets which could be seized.

In order to advise further I would need to see all documentation in connection with your claim. If a contract contains an arbitration clause, arbitration proceedings wouldd have to be gone through rather than Court proceedings.

Regards,

 

John Wilson

JOHN WILSON PARTNERS