Senate Approval Of US-Sri Lanka Tax Treaty Welcomed

by Mike Godfrey, Tax-News.com, Washington

30 March 2004

The US Treasury Department this week welcomed the recent Senate approval of the income tax treaty signed by the United States and Sri Lanka.

"The US-Sri Lanka tax treaty that has been approved by the Senate represents a new tax treaty relationship for the United States," explained Treasury Secretary John Snow, continuing:

"This tax treaty will expand our economic relations with Sri Lanka, an important trading partner in the developing world, and is an important step in our ongoing efforts to broaden the reach of our tax treaty network."

The US-Sri Lanka tax treaty, which will enter into force when instruments of ratification are exchanged between the two countries, contains provisions to address tax barriers to trade and investment between the two countries. It also contains administrative provisions, including rules for the resolution of disputes and provisions for the exchange of information on tax matters.

Separately, on Friday, Hong Kong's Secretary for Economic Development and Labour, Mr Stephen Ip, signed an Avoidance of Double Taxation Agreement (DTA) on shipping and air services income with a representative of the Sri Lankan government, at a ceremony held in Colombo.

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