Ceylinco Insurance Company Ltd vs Ratnayake – sllr 2005 volume 2 page 033

The case between Ceylinco Insurance Company Ltd and Ratnayake addressed the enforceability of a contractually agreed limitation period within an insurance contract, specifically whether parties could agree to a shorter prescription period than that provided by the Prescription Ordinance. It was held that the parties’ contractual time limitations for instituting action prevailed over the statutory period, rendering the plaintiff’s action time barred. The court reaffirmed the principle that freedom of contract permits parties to stipulate their own limitation periods unless prohibited by law. This decision relied on established legal authorities and emphasized that where an insurance contract specifies a limitation period, such stipulation is enforceable, thereby reinforcing contractual auto