Ceylon Electricity Board vs Heladhanavi Limited – SC APPEAL 155/2023-2024

Brief
The case between Heladhanavi Limited and the Ceylon Electricity Board addressed whether an arbitral award ordering reimbursement of dividend tax, pursuant to a “change in law event” or “reimbursable taxes” clause in the power purchase agreement, conflicted with the public policy of Sri Lanka. The court held that no conflict existed and the legal basis for setting aside the award was insufficient, reaffirming the principle that judicial intervention in arbitral awards is permitted only on established statutory grounds, such as express contravention of public policy. This decision relied on Section 32(1)(b)(ii) of the Arbitration Act and prevailing judicial precedents, emphasizing that party autonomy and limited court review are central to the arbitral process.

Jayantha Jayasuriya