Sri Lanka - Thailand FTA (2024)
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Type of Obligation: National Treatment. Most-Favoured-Nation Treatment. Performance Requirements. Senior Management and Board of Directors

Description of Measure

Thailand reserves the right to adopt or maintain any measure relating to investment in service sectors.

Source of Measure

19. Sector: All sectors

Subsector -

Industry Classification -

Level of Government: All levels

Type of Obligation: National Treatment. Most-Favoured-Nation Treatment. Performance Requirements. Senior Management and Board of Directors

Description of Measure

Thailand reserves the right to adopt or maintain any measure under Investment Promotion Act B.E. 2520 (1977), as amended, and its subsidiary legislation, regulations and announcements and National Competitiveness Enhancement for the Targeted Industries Act B.E. 2560 (2017), as amended, and its subsidiary legislation, regulations and announcements.

Source of Measure

- Investment Promotion Act B.E. 2520 (1977), as amended, and its subsidiary legislation, regulations and announcements issued thereunder

- National Competitiveness Enhancement for the Targeted Industries Act B.E. 2560 (2017), as amended, and its subsidiary legislation, regulations and announcements issued thereunder

ANNEX 9B. SCHEDULE OF RESERVATIONS AND NON-CONFORMING MEASURES FOR INVESTMENT. SRI LANKA

LIST A. Explanatory Notes

1. This Schedule is made pursuant to Chapter 9 (Investment) only. Any commitment of Sri Lanka made pursuant to Chapter 8 (Trade in Services) is found in Sri Lanka's Schedule in Annex 8B (Schedule of Specific Commitments - Sri Lanka).

2. For the purposes of liberalisation, the Chapter 9 (Investment) shall apply to  investment, subject to Article 9.9 (Reservations and Non-Conforming  Measures), in the following non-service sectors:

(a) manufacturing;

(b) agriculture;

(c) fisheries;

(d) forestry; and

(e) mining and quarrying.

3. List A sets out, pursuant to Article 9.9 (Reservations and Non-Conforming  Measures), Sri Lanka's measures that do not conform to the obligations under:

(a) Article 9.3 (National Treatment);

(b) Article 9.4 (Most-Favoured Nation Treatment);

(c) Article 9.7 (Performance Requirements); or

(d) Article 9.8 (Senior Management and Board of Directors).

4. List A and List B, pursuant to Article 9.9 (Reservations and Non-Conforming Measures), follow the negative list with two-list approach as follows:

(a) List A sets out commitments in relation to existing non-conforming measures. Paragraph 1 of Article 9.9 (Reservations and Non-Conforming Measures) applies to this List only; and

(b) List B sets out policy flexibility in relation to measures in sectors, subsectors, and activities.

5. Sri Lanka may add, withdraw or modify any of its reservations as set out in List A for a period of 24 months from the date of entry into force of this Agreement, provided that relevant non-conforming measure is in existence as of that date. Any such addition, withdrawal or modification will be notified to Thailand, including the relevant laws and regulations. Such reservation shall be deemed to be part of this Schedule upon such notification.

6. Each entry in List A shall set out the following elements, where applicable: (a) Sector refers to sector or sectors for which an entry is made;

(b) Subsector refers to specific industries, products, and activities for which an entry is made;

(c) Industry Classification refers to the activities covered by the entry according to the International Standard Industrial Classification (ISIC) Revision 4. As necessary and appropriate, Sri Lanka may specify the exact coverage of the entry if the entry does not exactly conform to the classification system;

(d) Level of Government specifies the level of government (e.g., Central, Regional, Provincial or Local) maintaining the measure for which an entry is made;

(e) Type of Obligation refers to the obligation of Article 9.3 (National Treatment), Article 9.4 (Most-Favoured-Nation Treatment), Article 9.7 (Performance Requirements) or Article 9.8 (Senior Management and Board of Directors), as the case may be, which does not apply to the listed measure;

(f) Description of Measure describes measures that do not conform to Article 9.3 (National Treatment), Article 9.4 (Most-Favoured-Nation Treatment), Article 9.7 (Performance Requirements), or Article 9.8 (Senior Management and Board of Directors) for which an entry is made; and

(g) Source of Measure is identified for transparency purposes only, for existing measures that apply to the sector, subsector, or activity covered by the entry.

7. Inthe interpretation of any entry, all elements of the entry shall be considered. The Description of Measure element shall prevail over all other elements.

8. These Explanatory Notes form an integral part of List A.

1. Sector: Fisheries

Subsector(s): Coastal Fishing

Industry Classification -

Level of Government: All levels

Type of Obligation National Treatment

Description of Measure

Non-resident investors (1) are not permitted to invest in voting shares of a company engaged in any activity related to coastal fishing.

Source of Measure

- Fisheries and Aquatic Resources Act No. 2 of 1996

- Foreign Exchange Act No. 12 of 2017 

and their subsequent amendments, subsidiary legislation, regulations, and orders.

(1) Non-Resident Investors shall mean any person resident outside Sri Lanka, country funds, regional funds, investment funds, and mutual funds established outside Sri Lanka.

2. Sector: Manufacturing

Subsector(s): Lotteries (including manufacture of lotteries)

Industry Classification -

Level of Government: All levels

Type of Obligation: National Treatment. Senior Management and Board of Directors

Description of Measure

Only the relevant Legal or Administrative Authority established by the Government of Sri Lanka can approve the foreign shareholding percentage of an incorporated company engaged in the manufacture of Lotteries.

Source of Measure

- Development Lotteries Board Act No. 20 of 1997

- National Lotteries Board Act No. 11 of 1963

- Foreign Exchange Act No.12 of 2017

and their subsequent amendments, subsidiary legislation, regulations, and orders.

3. Sector: Manufacturing

Subsector(s): Arms and Explosives

Industry Classification -

Level of Government: All levels

Obligations Concerned: National Treatment. Prohibition of Performance Requirements. Senior Management and Board of Directors

Description

Only the relevant Legal or Administrative Authority established by the Government of Sri Lanka can approve the foreign shareholding percentage of an incorporated company engaged in the manufacture of arms and explosives.

Existing Measures

Explosives Act No. 21 of 1956

Industrial Promotion Act No. 46 of 1990

Foreign Exchange Act No. 12 of 2017

and their subsequent amendments, subsidiary legislation, regulations, and orders.

LIST B. Explanatory Notes

1. This Schedule is made pursuant to Chapter 9 (Investment) only. Any commitment of Sri Lanka made pursuant to Chapter 8 (Trade in Services) is found in Sri Lanka's Schedule in Annex 8B (Schedule of Specific Commitments).

2. For the purposes of liberalisation, Chapter 9 (Investment) shall apply to investment, subject to Article 9.9 (Reservations and Non-Conforming Measures), in the following non-service sectors:

(i) manufacturing;

(ii) agriculture;

(iii) fisheries;

(iv) forestry; and

(v) mining and quarrying

3. List B sets out, pursuant to Article 9.9 (Reservations and Non- Conforming Measures), Sri Lanka's measures that do not conform to the obligations under:

(a) Article 9.3 (National Treatment);

(b) Article 9.4 (Most-Favoured-Nation Treatment);

(c) Article 9.7 (Performance Requirements); or

(d) Article 9.8 (Senior Management and Board of Directors).

4. List A and List B pursuant to Article 9.9 (Reservations and Non- Conforming Measures) follow the negative list with two-list approach as follows:

(a) List A sets out commitments in relation to existing non- conforming measures. Paragraph 1 of Article 9.9 (Reservations and Non- Conforming Measures) applies to this List only; and

(b) List B sets out policy flexibility in relation to measures in sectors, subsectors, and activities.

5. Each entry in List B sets out the following elements, where applicable:

(a) Sector refers to the sector or sectors for which an entry is made;

(b) Subsector refers to the specific industries, products, and activities for which the entry is made;

(c) Industry Classification refers to the activity covered by the entry, according to the International Standard Industrial Classification (ISIC) Revision 4.

As necessary and appropriate, Sri Lanka may specify the exact coverage of the entry if the entry does not exactly conform to the classification system;

(d) Level of Government specifies the level of government (e.g., Central, Regional, Provincial or Local) maintaining the measure for which the entry is made;

(e) Type of Obligation refers to the obligations of Article 9.3 (National Treatment), Article 9.4 (Most-Favoured-Nation Treatment), Article 9.7 (Performance Requirements) or Article 9.8 (Senior Management and Board of Directors), as the case may be, which does not apply to the listed measure;

(f) Description of Measure describes measures that do not conform to Article XX.3 (National Treatment), Article 9.4 (Most-Favoured-Nation Treatment), Article 9.7 (Performance Requirements), or Article 9.8 (Senior Management and Board of Directors) for which the entry is made; and

(g) Source of Measure is identified for transparency purposes only, for existing measures that apply to the sector, subsector, or activity covered by the entry.

6. In the interpretation of any entry, all elements of the entry shall be considered. The Description of Measure element shall prevail over all other elements.

7. These Explanatory Notes form an integral part of List B.

1. Sector: Agriculture

Sub-Sector -

Industry Classification -

Level of Government: All levels

Type of Obligation: National Treatment. Performance Requirements. Senior Management and Board of Directors

Description of Measure

Sri Lanka reserves the right to adopt or maintain any measure with respect to an investor or investment in any activity related to agriculture.

Source of Measure

2. Sector: Forestry

Sub-Sector -

Industry Classification -

Level of Government: All levels

Type of Obligation: National Treatment. Performance Requirements Senior Management and Board of Directors

Description of Measure

Sri Lanka reserves the right to adopt or maintain any measure with respect to an investor or investment in any activity related to forestry.

Source of Measure

3. Sector: Fisheries

Sub-Sector -

Industry Classification -

Level of Government: All levels

Type of Obligation: National Treatment. Performance Requirements. Senior Management and Board of Directors

Description of Measure

Sri Lanka reserves the right to adopt or maintain any measure  with respect to an investor or investment in any activity related to fisheries.

Source of Measure

4. Sector: Mining and Quarrying

Sub-Sector -

Industry Classification -

Level of Government: All levels

Type of Obligation: National Treatment. Performance Requirements. Senior Management and Board of Directors

Description of Measure

Sri Lanka reserves the right to adopt or maintain any measure with respect to an investor or investment in any activity related to mining and quarrying.

Source of Measure

5. Sector: Energy

Sub-Sector -

Industry Classification -

Level of Government: All levels

Type of Obligation: National Treatment. Performance Requirements. Senior Management and Board of Directors

  • Chapter   1 INITIAL PROVISIONS AND GENERAL DEFINITIONS 1
  • Article   1.1 Objectives 1
  • Article   1.2 Establishment of a Free Trade Area 1
  • Article   1.3 Relation to other Agreements 1
  • Article   1.4 Definitions of General Application 1
  • Chapter   2 TRADE IN GOODS 1
  • Article   2.1 Scope 1
  • Article   2.2 National Treatment 1
  • Article   2.3 Customs Value 1
  • Article   2.4 Reduction or Elimination of Customs Duties 1
  • Article   2.5 Standstill Clause 1
  • Article   2.6 Accelerated Tariff Elimination 1
  • Article   2.7 Classification of Goods 1
  • Article   2.8 HS Transposition of Schedules of Tariff Commitments 1
  • Article   2.9 Administrative Fees and Formalities 1
  • Article   2.10 Non-Tariff Measures 1
  • Article   2.11 Import Licensing Procedures 1
  • Article   2.12 State Trading Enterprises 1
  • Article   2.13 Modification and Withdrawal of Concessions 1
  • Article   2.14 Restrictions to Safeguard the Balance of Payments 1
  • Article   2.15 Committee on Trade In Goods 1
  • Chapter   3 RULES OF ORIGIN 1
  • Section   I GENERAL PROVISIONS 1
  • Article   3.1 Definitions 1
  • Article   3.2 Origin Criteria 2
  • Article   3.3 Wholly Obtained or Produced Goods 2
  • Article   3.4 Goods Not Wholly Produced or Obtained 2
  • Article   3.5 Qualifying Value Content (QVC) 2
  • Article   3.6 Indirect Material/Neutral Elements 2
  • Article   3.7 Minimal Operations and Processes That Do Not Confer Origin 2
  • Article   3.8 Cumulation of Origin 2
  • Article   3.9 De Minimis 2
  • Article   3.10 Fungible Goods or Materials 2
  • Article   3.11 Accessories, Spare Parts, Tools, and Instructional or other Information Materials 2
  • Article   3.12 Treatment of Packages, Packing Materials, and Containers 2
  • Article   3.13 Direct Consignment 2
  • Article   3.14 Sets 2
  • Section   II OPERATIONAL CERTIFICATION PROCEDURES 2
  • Article   3.15 General Requirements for Certificate of Origin 2
  • Article   3.16 Issuance of the Certificate of Origin 2
  • Article   3.17 Validity of Certificates of Origin 2
  • Article   3.18 Certificate of Origin 2
  • Article   3.19 Application for Certificate of Origin 2
  • Article   3.20 Obligations of the Competent Authority 2
  • Article   3.21 Treatment of Erroneous Declaration In the Certificate of Origin 2
  • Article   3.22 Loss of the Certificate of Origin 3
  • Article   3.23 Waiver of Certificates of Origin 3
  • Article   3.24 Treatment of Minor Discrepancies 3
  • Article   3.25 Claims for Preferential Treatment 3
  • Article   3.26 Verification of Origin 3
  • Article   3.27 Verification Visit 3
  • Article   3.28 Determination of Origin and Preferential Tariff Treatment 3
  • Article   3.29 Preservation of Certificates of Origin and Supporting Documents 3
  • Article   3.30 Confidentiality 3
  • Article   3.31 Exhibitions 3
  • Article   3.32 Sanctions Against False Declaration 3
  • Article   3.33 Obligations of the Importer 3
  • Article   3.34 Obligations of the Exporter 3
  • Article   3.35 Third Party Invoices 3
  • Article   3.36 Importation by Instalments 3
  • Article   3.37 Cooperation between Competent Authorities 3
  • Article   3.38 Settlement of Disputes 3
  • Article   3.39 Transitional Provisions for Goods In Transit 3
  • Article   3.40 Review and Appeal 3
  • Article   3.41 Committee on Rules of Origin 3
  • Chapter   4 CUSTOMS PROCEDURES AND TRADE FACILITATION 3
  • Article   4.1 Objectives 3
  • Article   4.2 Scope 3
  • Article   4.3 Definitions 3
  • Article   4.4 Pre-arrival Processing 3
  • Article   4.5 Advance Rulings 3
  • Article   4.6 Customs Procedures 3
  • Article   4.7 Customs Clearance 4
  • Article   4.8 Trade Facilitation Measures for Authorised Operators 4
  • Article   4.9 Risk Management 4
  • Article   4.10 Expedited Shipments 4
  • Article   4.11 Time Release Studies 4
  • Article   4.12 Temporary Admission of Goods 4
  • Article   4.13 Use of Automated Systems 4
  • Article   4.14 Review and Appeal 4
  • Article   4.15 Penalties Disciplines 4
  • Article   4.16 Enquiry Points 4
  • Article   4.17 Publication 4
  • Article   4.18 Customs Cooperation 4
  • Article   4.19 Post-Clearance Audit 4
  • Article   4.20 Electronic Payment 4
  • Chapter   5 SANITARY AND PHYTOSANITARY MEASURES 4
  • Article   5.1 Objectives 4
  • Article   5.2 Scope 4
  • Article   5.3 Definitions 4
  • Article   5.4 General Provision 4
  • Article   5.5 Harmonization 4
  • Article   5.6 Equivalence 4
  • Article   5.7 Risk Analysis 4
  • Article   5.8 Adaptation to Regional Conditions, Including Pest-or Disease- Free Areas and Areas of Low Pest or Disease Prevalence 4
  • Article   5.9 Transparency 4
  • Article   5.10 Import Checks 5
  • Article   5.11 Certification 5
  • Article   5.12 Audit 5
  • Article   5.13 Technical Consultation 5
  • Article   5.14 Cooperation 5
  • Article   5.15 Working Group on Sanitary and Phytosanitary Measures 5
  • Article   5.16 Competent Authorities and Contact Points 5
  • Article   5.17 Dispute Settlement 5
  • Chapter   6 TECHNICAL BARRIERS TO TRADE 5
  • Article   6.1 Objectives 5
  • Article   6.2 Scope 5
  • Article   6.3 Definitions 5
  • Article   6.4 Affirmation of the TBT Agreement 5
  • Article   6.5 International Standards 5
  • Article   6.6 Standards 5
  • Article   6.7 Technical Regulations 5
  • Article   6.8 Conformity Assessment Procedures 5
  • Article   6.9 Transparency 5
  • Article   6.10 Cooperation 5
  • Article   6.11 Technical Discussions 5
  • Article   6.12 Market Surveillance 5
  • Article   6.13 Marking and Labelling 5
  • Article   6.14 Contact Points 5
  • Chapter   7 TRADE REMEDIES 5
  • Section   I ANTI-DUMPING AND COUNTERVAILING MEASURES 5
  • Article   7.1 Anti-Dumping Measures 5
  • Article   7.2 Countervailing Measures 5
  • Article   7.3 Practices Relating to Anti-dumping and Countervailing Duty Proceedings 6
  • Section   II COOPERATION 6
  • Article   7.4 Areas of Cooperation 6
  • Section   III GLOBAL SAFEGUARD MEASURES 6
  • Article   7.5 Global Safeguards 6
  • Section   IV BILATERAL SAFEGUARD MEASURES 6
  • Article   7.6 Definitions 6
  • Article   7.7 Application of Bilateral Safeguard Measures 6
  • Article   7.8 Conditions and Limitations on Imposition of a Bilateral Safeguard Measure 6
  • Article   7.9 Provisional Measures 6
  • Article   7.10 Compensation 6
  • Article   7.11 Administration of Emergency Action Proceedings 6
  • Article   7.12 Non-Application of Dispute Settlement 6
  • Chapter   8 TRADE IN SERVICES 6
  • Article   8.1 Definitions 6
  • Article   8.2 Scope and Coverage 6
  • Article   8.3 Market Access 7
  • Article   8.4 National Treatment 7
  • Article   8.5 Additional Commitments 7
  • Article   8.6 Schedule of Specific Commitments 7
  • Article   8.7 Modification of Schedules 7
  • Article   8.8 Domestic Regulation 7
  • Article   8.9 Recognition 7
  • Article   8.10 Monopolies and Exclusive Service Suppliers 7
  • Article   8.11 Business Practices 7
  • Article   8.12 Emergency Safeguard Measures 7
  • Article   8.13 Payments and Transfers 7
  • Article   8.14 Restrictions to Safeguard Balance of Payments 7
  • Article   8.15 Transparency 7
  • Article   8.16 Disclosure of Confidential Information 7
  • Article   8.17 Denial of Benefits 7
  • Article   8.18 Contact Points 7
  • Article   8.19 Committee on Trade In Services 7
  • Article   8.20 Miscellaneous Provisions 7
  • Chapter   9 INVESTMENT 7
  • Article   9.1 Definitions 7
  • Article   9.2 Scope and Coverage 7
  • Article   9.3 National Treatment 8
  • Article   9.4 Most-Favoured-Nation Treatment 8
  • Article   9.5 Treatment of Investment 8
  • Article   9.6 Compensation for Losses 8
  • Article   9.7 Performance Requirements 8
  • Article   9.8 Senior Management and Boards of Directors 8
  • Article   9.9 Reservations and Non-Conforming Measures 8
  • Article   9.10 Transparency 8
  • Article   9.11 Expropriation and Compensation 8
  • Article   9.12 Transfers 8
  • Article   9.13 Subrogation 8
  • Article   9.14 Denial of Benefits 8
  • Article   9.15 Promotion of Investment 8
  • Article   9.16 Facilitation of Investment 8
  • Article   9.17 Special Formalities and Treatment of Information 8
  • Article   9.18 Temporary Safeguard Measures 8
  • Article   9.19 General Exceptions 8
  • Article   9.20 Security Exceptions 8
  • Article   9.21 Term of Bilateral Investment Treaty 8
  • Article   9.22 Corporate Social Responsibility 9
  • Article   9.23 Committee on Investment 9
  • Article   9.24 Settlement of Investment Disputes between a Party and an Investor of the other Party 9
  • Annex 9A  SCHEDULE OF RESERVATIONS AND NON-CONFORMING MEASURES FOR INVESTMENT 9
  • Annex 9A  THAILAND 9
  • LIST A  EXPLANATORY NOTES 9
  • LIST B  EXPLANATORY NOTES 10
  • ANNEX 9B  SCHEDULE OF RESERVATIONS AND NON-CONFORMING MEASURES FOR INVESTMENT. SRI LANKA 12
  • LIST A  Explanatory Notes 12
  • LIST B  Explanatory Notes 12
  • ANNEX 9C  PUBLIC DEBT 14
  • Chapter   10 INTELLECTUAL PROPERTY 14
  • Article   10.1 Affirmation of the TRIPS Agreement 14
  • Article   10.2 Cooperation 14
  • Chapter   11 ECONOMIC COOPERATION 14
  • Article   11.1 Objectives 14
  • Article   11.2 Scope 14
  • Article   11.3 Areas of Cooperation 14
  • Article   11.4 Implementation of Cooperation 14
  • Article   11.5 Revision, Modification or Amendment 14
  • Article   11.6 Dispute Settlement 14
  • Article   11.7 Relation to other Agreements 14
  • Chapter   12 TRANSPARENCY 14
  • Article   12.1 Definition 14
  • Article   12.2 Publication 14
  • Article   12.3 Provision of Information 15
  • Article   12.4 Confidentiality and Disclosure of Information 15
  • Article   12.5 Administrative Proceedings 15
  • Article   12.6 Review and Appeal 15
  • Article   12.7 Contact Points 15
  • Article   12.8 Relations to Specific Provisions 15
  • Chapter   13 DISPUTE SETTLEMENT 15
  • Article   13.1 Scope 15
  • Article   13.2 Choice of Forum 15
  • Article   13.3 Consultations 15
  • Article   13.4 Good Offices, Conciliation or Mediation 15
  • Article   13.5 Establishment of an Arbitral Panel 15
  • Article   13.6 Terms of Reference 15
  • Article   13.7 Composition of Arbitral Panels 15
  • Article   13.8 Functions of Arbitral Panels 15
  • Article   13.9 Rules of Procedures 15
  • Article   13.10 Suspension or Termination of Proceedings 15
  • Article   13.11 Initial Report 15
  • Article   13.12 Final Report 15
  • Article   13.13 Implementation of the Report 15
  • Article   13.14 Non-Implementation - Compensation and Suspension of Concessions or other Obligations 15
  • Article   13.15 Compliance Review 16
  • Article   13.16 Expenses 16
  • Chapter   14 INSTITUTIONAL AND FINAL PROVISIONS 16
  • Section   I ADMINISTRATION AND INSTITUTIONAL PROVISIONS 16
  • Article   14.1 Free Trade Commission 16
  • Article   14.2 Duties of the Commission 16
  • Article   14.3 Procedures of the Commission 16
  • Section   II EXCEPTIONS 16
  • Article   14.4 General Exceptions 16
  • Article   14.5 Security Exceptions 16
  • Article   14.6 Taxation Measures 16
  • Section   III FINAL PROVISIONS 16
  • Article   14.7 Annexes, Notes, and Footnotes 16
  • Article   14.8 General Review 16
  • Article   14.9 Amendments 16
  • Article   14.10 Entry Into Force 16
  • Article   14.11 Termination 16