Sri Lankan legal heritage could offer novel solution to sovereign debt crises

A unique legal principle from Sri Lanka's Roman-Dutch law heritage, "unjust enrichment", could be a key to unlocking innovative solutions for nations struggling with sovereign debt, a prominent Sri Lankan lawyer has suggested.

- Hiran M.C. de Alwis

The proposal comes as countries in the Global South seek new mechanisms to handle debt burdens exacerbated by external shocks.

Speaking at the 2025 New Delhi International Rule of Law Convention, Hiran M.C. de Alwis, Chairman of the Sri Lanka National Arbitration Centre, argued that the global legal system must facilitate new platforms to resolve these crises. He posited that Sri Lanka's principle of "unjust enrichment" could be utilised in this context, offering a homegrown legal concept to address complex international financial challenges.

The core of de Alwis' argument is a provocative question: what if the sovereign debt crisis was triggered by a force majeure-like situation? He pointed to the COVID-19 pandemic and the subsequent worldwide economic lockdowns, enforced under directives from global bodies like the World Health Organisation, as an unforeseen event beyond the control of sovereign countries.