U.S. SENATE RATIFIES THE SRI LANKA - U.S.
DOUBLE TAXATION AGREEMENT AND PROTOCOL
Welcoming Senate approval for the U.S.
- Sri Lanka Tax Treaty, U.S. Treasury Secretary Snow says, that
the tax treaty will
expand U.S. economic relations with Sri Lanka, an important trading
partner in the developing world
Sri Lanka's Envoy to the United States,
Ambassador Subasinghe says that the Double Taxation agreement
is a milestone in the
Sri Lanka U.S. business relationship
The United States Senate approved the US-Sri Lanka Double Taxation
Agreement and the Protocol Amending the Convention between the
Government of Sri Lanka and the US Government for the Avoidance
of Double Taxation and the Prevention of Fiscal Evasion on March
The proposed tax treaty with the US was first signed in 1985.
The Protocol Amending the Convention between the Government of
Sri Lanka and the US Government for the Avoidance of Double Taxation
and the Prevention of Fiscal Evasion with Respect to Taxes on
Income, was signed in Washington DC in September 2002.
The agreement with Sri Lanka represents the first tax treaty
between the two countries. Welcoming Senate approval for the US-Sri
Lanka Tax Treaty, Treasury Secretary Snow said, "[t]his tax
treaty will expand our economic relations with Sri Lanka, an important
trading partner in the developing world, and is an important step
in our ongoing efforts to broaden the reach of our tax treaty
Sri Lanka's Ambassador to the United States, Ambassador Subasinghe,
commenting on Senate approval said, "the conclusion of this
Agreement is an important milestone in the developing Sri Lanka
-US business relationship benefiting US companies in Sri Lanka
and the small but growing Sri Lanka owned companies operating
in the US. It is expected to generate greater confidence with
US investors wishing to invest in Sri Lanka and would also strengthen
the existing framework for the promotion of US investments such
as the Bilateral Investment Promotion and Protection Treaty and
the Trade and Investment Framework Agreement (TIFA)." Further,
the Treaty would expand the ongoing discussions under the US-Sri
Lanka Trade and Investment Framework agreement aimed at deepening
and diversifying trade between the two countries.
The proposed Treaty will relieve Double Taxation both in the
United States and Sri Lanka through the Foreign Tax Credit Mechanism.
It will also provide for non-discriminatory treatment by one country
to residents and nationals of the other. Further, the Treaty includes
an exchange of information provisions that generally follows the
US Model. Sri Lanka has confirmed its ability to obtain and exchange
key tax related information.
Following ratification by the Senate, the Treaty and the Protocol
will come into force upon a bilateral exchange of Instruments
of Ratification. Sri Lanka had previously ratified the agreement.
The exchange of instruments of ratification is projected for the
second quarter of 2004.
Embassy of Sri Lanka
26 March 2004