Avoidance of double taxation:

Sri Lanka - Luxembourg to negotiate

Attract more investments:

The Luxembourg Foreign Affairs Ministry has agreed to enter into negotiations with the Sri Lanka Government on an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on incomes between Luxembourg and Sri Lanka.

The latest media release issued by the Sri Lanka Embassy in Brussels said the absence of such an agreement has been seen as a limitation in attracting investment from Luxembourg.

It is deemed that this agreement would encourage Luxembourg entrepreneurs to invest in Sri Lanka, particularly in the service sector with special focus on IT and IT enabled services and financial services.

Investment opportunities in Luxembourg were further explored in May this year during a visit of a delegation of the Ceylon Chamber of Commerce Sri Lanka-BENELUX Business Council, which was visiting Luxembourg for the first time. They participated in a round table discussion on trade and investment prospects in Sri Lanka jointly organized by the Embassy of Sri Lanka in Brussels and the Luxembourg Chamber of Commerce, the media release said.

In March this year, a Sri Lanka delegation led by Secretary/External Affairs Romesh Jayasinghe including Ambassador Ravinatha Aryasinha held bi-lateral talks with Luxembourg Deputy Prime Minister and Foreign Minister Jean Asselborn and briefed them on developments in Sri Lanka. They sought the support of Luxembourg towards Sri Lanka’s post-conflict recovery, as well as in encouraging investment in Sri Lanka from Luxembourg.