Cabinet approves signing of amended Sri Lanka–Luxembourg Double Taxation Agreement

Wednesday, 26 November 2025 00:00 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Monday approved signing the protocol amending the agreement between Sri Lanka and Luxembourg on the avoidance of double taxation and the prevention of tax evasion.

Sri Lanka and the Grand Duchy of Luxembourg first entered into a double taxation agreement on 31 January 2013. Both countries are members of the Inclusive Framework of the Base Erosion and Profit Shifting (BEPS) Project, which requires member states to implement at least the minimum standards outlined in the G20–OECD BEPS Action Reports.

In line with these obligations, Luxembourg’s tax authorities proposed a set of amendments to the existing agreement to ensure full compliance with BEPS requirements. After reviewing the proposed changes, Sri Lankan tax authorities conveyed their agreement, leading to the drafting of an amended protocol.

The revised agreement has since received clearance from the Attorney General and includes observations from the Ministry of Foreign Affairs, Foreign Employment and Tourism. With Cabinet approval now secured, the two countries are expected to proceed with signing the amended protocol in due course.

The proposal to this effect was submitted by President Anura Kumara Dissanayake in his capacity as the Finance Minister.