⚖️ Supreme Court Affirms State Liability in Jacobe Resources Arbitration Case

The Supreme Court of Sri Lanka has dismissed an appeal by the Inspector General of Police (IGP), upholding a 2019 arbitration award and subsequent Commercial High Court judgment in favor of Jacobe Resources International Singapore Ltd. • Case Background: The dispute involved breaches of two contracts by the Sri Lankan State. A majority arbitral tribunal, led by former Chief Justice G.P.S. de Silva, originally ruled in 2019 that the contracts were breached, entitling the company to damages. • Legal Ruling: The Supreme Court (Justices Mahinda Samayawardhena and Sampath Wijeratne) refused the IGP’s petition to set aside the High Court's enforcement of the award, effectively confirming the State’s liability. • Financial Implications: The judgment enforces the payment of: • Damages for contract breaches. • Legal interest calculated from 2014. • Full costs of the arbitration proceedings. • Significance: This ruling reinforces the enforcement of international arbitration awards in Sri Lanka and underscores the accountability of state institutions in commercial contractual obligations.