Lanka, Luxembourg to ink agreement to avoid double taxation [May 24 2011]

Sri Lanka and Government of the Grand Dutch of Luxemburg have concluded negotiations on an Agreement for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income and on capital.

The necessity for having such an agreement was highlighted during the regular interaction with the Luxembourg business community by the Embassy and during visits to Luxembourg by the Benelux Business Council and many other visits.

This agreement will come in to effect with the completion of necessary procedural and protocol formalities by both Governments.

Luxembourg being a major financial hub in Europe has a strong financial and services sector which accounts for over 86 % of the economy. Luxembourg companies have so far invested over US $ 6 million in six projects in Sri Lanka and the conclusion of this agreement would serve as catalyst in stimulating greater flow of capital, technology and personnel between Sri Lanka and Luxembourg. (SS)