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Sunday, 10 February 2013

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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.

 

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