Improvement of the performance of thejudiciary is an important part of a growth agenda for SriLanka as it moves to middle income country status. Thepresent government has set ambitious targets to double grossdomestic product (GDP) per capita by 2016 and has cited theneed for a more efficient judicial sector as a means ofreducing poverty. This is consistent with the broadhistorical evidence that a well-functioning judicial sectoris the most effective long-term instrument for securingproperty rights and enforcing contracts, which in turn arecritical factors for investment and commerce, and hencepoverty reduction and economic growth. Sri Lanka ranks 133rdin the 2013 doing business's sub-index on enforcementof contracts, a level that is comparable to other SouthAsian countries but lower than other middle incomecomparators such as Thailand (ranked 23rd) and Malaysia(ranked 33rd). Identifying the contributing factors toinefficiency in Sri Lanka's courts in hearingcommercial cases is the main purpose of this review. Thefindings in the report are based on available statistics oncourt performance and interviews with key stakeholders inthe justice sector. The report is structured as follows:chapter one gives introduction, chapter two givesorganization and management of the courts, chapter threegives data on case handling in courts, chapter four dealswith private sector approaches to dispute resolution,chapter five focuses on legal and procedural issues incommercial cases, chapter six gives past reform efforts, andchapter seven gives conclusions and recommendations.
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