In this article, a dissipativity based discrete time sliding mode controller is proposed for bilateral teleāoperation in presence of communication delays and packet losses. The controllers for both master and slave arm are designed to follow a predefined impedance dynamics with dissipative characteristics. The slave arm controller is designed as a two layered structure. The first layer uses the tracking error between master and slave to create a target velocity profile based on the user defined impedance dynamics. The second layer uses this target velocity profile, slave motion and the contact forces to design a reaching law based discrete time sliding mode controller. A model following reaching law approach is used to design the sliding mode control which alleviates the chattering in the input by removing the impact of the accumulated effects of the past disturbance from the system. Moreover, an adaptive tuning method is used for the switching gain of the sliding mode control so that the controller can be designed even when exact information on the uncertainty bounds are unknown. Numerical simulations are presented for Phantom Omni arm to show the efficacy of the proposed method.