39.
| (1) It shall be an implied term of the arbitration agreement that in the event of a dispute arising to which the agreement applies, it shall be the duty of the claimant to exercise due diligence in the prosecution of a claim. |
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| (2) Where there has been undue delay by a claimant in instituting or prosecuting a claim pursuant to an arbitration agreement, then, on the application of any party to the dispute, the arbitral tribunal may make an order terminating the arbitration proceedings. |
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| (3) The arbitral tribunal shall not make an order under subsection (2) unless it is satisfied
| | (a) that the delay has been intentional or inordinate ; or | | |
| | (b) that the delay will give rise to a substantial risk of it not being possible to have a fair determination of the issues in the arbitration proceedings or is such as is likely to cause or to have caused serious prejudice to the other parties to the arbitration proceedings either as between themselves and the clamant or between each other or between them and a third party. | | |
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| (4) A party aggrieved by any order of the arbitral tribunal made on an application under subsection (2) may appeal to the High Court. |
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Sri Lanka Consolidated Acts