Sri Lanka-Luxembourg pact on avoidance of double taxation
An agreement on Avoidance of Double Taxation (DTA) between Sri Lanka
and Luxembourg was signed on January 31 in Luxembourg. Sri Lanka's
Ambassador to Belgium, Luxembourg and the Head of Mission to the
European Union, P.M. Amza, signed the agreement on behalf of the
Government while Minister of Finance of Luxembourg signed it on behalf
of the Government of Luxembourg, Luc Frieden. The signing of the DTA
took place following the presentation of the Letters of Credence by
Ambassador Amza, to Grand Duchy of Luxembourg on January 30.
Frienden said the business communities of both countries should make
use of the benefits generated by signing this agreement. Ambassador Amza
recalled that in 1982, the two countries signed an Investment Promotion
and Protection Agreement, and that the businesses in both countries
could use these legal instruments on trade to enhance the flow of trade
and business activities.
As Luxembourg and Sri Lanka are designated as major tourist
destinations, investment projects in areas of tourism has the potential
for mutual cooperation and knowledge sharing. Similarly, it is possible
for Sri Lanka to closely work on BPO arrangements for the financial
services sector in Luxembourg.
Luxembourg's financial and services sector in turn can benefit from
the IT-based services and expertise of Sri Lanka.