Sri Lanka and Austria are advancing toward the signing of a landmark Double Taxation Avoidance Agreement (DTAA) aimed at eliminating the double taxation of income and capital, while also curbing tax avoidance and evasion. This agreement will lay the foundation for a transparent and reliable legal framework that enhances bilateral economic cooperation and strengthens investor confidence.
Although the treaty may introduce limited tax concessions, the long-term gains—including increased foreign direct investment (FDI), improved capital mobility, and foreign exchange inflows—are expected to significantly contribute to Sri Lanka’s sustainable economic development.
The Cabinet of Ministers of Sri Lanka has officially approved the proposal to proceed with the signing of this key agreement, marking another step toward creating a globally competitive, investor-friendly business environment.
