The Mediation Boards Act 1988 and its subsequent amendments, outline the process for resolving disputes through mediation in Sri Lanka.

A disputing party may make an application and submit his/her grievance directly to the mediation board via referral made in one of four ways:-

1. Parties can voluntarily refer their dispute to a mediation panel.
2. There is a mandatory referral to mediation for civil disputes related to property, debt, damage, or demand not exceeding 1,000,000 rupees with exceptions.
3. Certain criminal offenses, such as property offenses, assault, trespass, and defamation, are mandated to be referred to mediation.
4. A court may refer a dispute to a mediation panel if both parties agree to it (Court-referred mediation).

The Board then refers the dispute to a mediation panel consisting of 3 mediators. The Board's role is to facilitate the mediation process and help disputants find mutually acceptable solutions to their disagreements, promoting peace and harmony within the community.

Disputes can be successfully mediated between 1 and 4 sittings. Mediation boards usually sit on weekends in common public places such as temples, schools or community halls. Mediation is generally conducted in an open area, but private sessions are also entertained especially when the dispute in question requires privacy. Legal representation of disputants is strictly unallowed. Attorneys-at-law are barred from representing any party with the exception of two instances:

1. By one spouse for the other spouse and
2. By parent, guardian or curator of a child or a person with any disability.

A certificate of settlement is issued upon a successful mediation of a dispute, and a certificate of non-settlement is issued when the mediation is not successful. The latter provides a valid legal base for parties to proceed with litigation. The 1988 Act mandates that where one party fails to comply with the settlement or violates the terms of settlement at any time, then the other party is required to report this to the mediation board immediately.

ESTABLISHMENT OF MEDIATION BOARDS

A general procedure sanctioned by the law is adopted in the establishment of community mediation boards, and is as follows:

1. Minister of Justice publishes an Order in the Gazette to specify the Mediation Board Area.
2. Mediation Boards Commission (MBC) publishes a Gazette to issue notifications for Nominations from persons, organizations and government institutions.
3. Selected candidates will be interviewed by the MBC and MBC will select the eligible candidates as Mediator Trainees.
4. Selected candidates follow a preliminary training course in mediation and mediation techniques.
5. This is followed by the training of mediator trainees and make a report on aptitude, knowledge and skills (recommendations) for appointments by Mediation Training Officers (MTOs)
6. Establishment and appointment of mediators (MBC)

A general procedure sanctioned by the law is adopted in the establishment of special mediation boards, and is as follows:

1. Minister of Justice (MOJ) publishes an Order in the Gazette to specify the Categories of Disputes, Special Mediation Board Areas, monetary value and the qualifications for mediators
2. Mediation Boards Commission (MBC) publishes a Gazette to notify for nominations from persons, organizations and Government institutions.
3. Selected candidates will be interviewed by the MOJ/MBC; and MBC will select eligible candidates as Mediator Trainees.
4. Selected candidates follow a comprehensive six (6) day training programme on mediation and mediation techniques conducted by the Mediation Training Officers (MTOs)
5. Mediator trainees are assessed on aptitude, knowledge and skills at the end of the training program and the recommendations are made to the MBC by MTOs.
6. Appointment of Mediators/ Establishment of Special Mediation Boards by MBC
7. Additional training by experts for the selected Mediators on technical knowledge and skills on the relevant categories of disputes 
8. Stakeholder meeting and commencement of special mediation process

COMPOSITION OF MEDIATION BOARDS

Twelve to fifteen mediators are generally appointed to one board and each mediation session involves a panel of three mediators. The mediators on the board sit at mediation sessions in rotation. Each panel consists of a chief mediator, and in the event that the Chairperson of the Mediation Board is also a member of that panel, then he will be declared as the Chief Mediator. In his absence, a Chief Mediator would be selected from the available pool of mediators forming the panel.