U.S. TO RATIFY THE PROTOCOL AMENDING THE
SRI LANKA - U.S. DOUBLE TAXATION AGREEMENT
President George W. Bush has sent a communication to the US Senate
seeking ratification of the amendment to Sri Lanka-US Double Taxation
The Protocol amending the Convention between the Government of
Sri Lanka and the Government of the United States of America for
the Avoidance of Double Taxation and Prevention of Fiscal Evaluation
with respect to Taxes on Income (1985) was signed on 20 September
2002 in Washington D.C. The Hon. Milinda Moragoda, Minister of
Economic Reform, Science & Technology and the Hon. Christina
B. Rocca, Assistant Secretary of State for South Asia signed the
Agreement on behalf of their respective Governments.
The text of the new Protocol, which has been long outstanding
was finalized at official level discussions during the visit of
Hon. Prime Minister Ranil Wickremesinghe to Washington D.C. in
July 2002. The protocol reflects changes in the laws and policies
of both countries, since the signing of the Double Taxation Convention
in 1985. It contains provisions to facilitate investment between
the two countries by addressing the issues of taxation of cross-border
payments, investment income, business profits, capital gains and
other types of income.
Ambassador Devinda R. Subasinghe, said that "the implementation
of the Protocol to the US Double Taxation Convention would generate
greater confidence in US investors contemplating to investment
in Sri Lanka. It also would further strengthen existing legal
framework for the promotion of US investment including Bilateral
Investment Promotion and Protection Treaty and Trade and Investment
Framework Agreement (TIFA), which was concluded during the Prime
Minister's visit to Washington D.C. in July 2002."
Following is the text of the communication addressed by President
George W. Bush to the US Senate seeking the ratification of the
"I transmit herewith, for Senate advice and consent to ratification,
the Protocol Amending the Convention Between the Government of
the United States of America and the Government of the Democratic
Socialist Republic of Sri Lanka - for the Avoidance of Double
Taxation and the Prevention of Fiscal Evasion with Respect to
Taxes on Income signed at Colombo on March 14, 1985, together
with an exchange of notes, signed at Washington on September 20,
2002 (the "Protocol"). I also transmit, for the information
of the Senate, the report of the Department of State concerning
The Protocol would amend the Convention to make it similar to
tax treaties between the United States and other developing nations.
The Convention would provide maximum rates of tax to be applied
to various types of income and protection from double taxation
of income. The Convention, as amended by the Protocol, also provides
for resolution of disputes and sets forth rules making its benefits
unavailable to residents that are engaged in treaty shopping.
I recommend that the Senate give early and favorable consideration
to this Protocol in conjunction with the Convention, and that
the Senate give its advice and consent to ratification.
GEORGE W. BUSH
THE WHITE HOUSE, "
Embassy of Sri Lanka
30 October 2003