- Board of Investment Law No. 4 of 1978
- Industrial Development Act No. 36 of 1969
and their subsequent amendments, subsidiary legislation, regulations, and orders.
15. Sector: All sectors
Sub-Sector -
Industry Classification -
Level of Government: Central level
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 relating to environment, health, and culture.
Source of Measure
16. Sector: All service sectors
Sub-Sector -
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
Sri Lanka reserves the right to adopt or maintain any measure relating to investment in service sectors.
Source of Measure
17. Sector: All sectors
Sub-Sector -
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
Sri Lanka reserves the right to adopt any measure relating to natural resources within the territory of Sri Lanka.
Source of Measure
18. Sector: All sectors
Sub-Sector -
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
Sri Lanka reserves the right to adopt or maintain any measures relating to national defence, public order and security, arms and ammunition, explosives, river ports, sea ports, and airports.
Source of Measure
- The Constitution of Democratic Socialist Republic of Sri Lanka 1978
- Penal Code No. 2 of 1883
- Code of Criminal Procedure Act No. 15 of 1979
- Prevention of Terrorism Act No. 48 of 1979
- Public Securities Ordinance No. 25 of 1947
- Sri Lanka Air Force Act No. 41 of 1949
- Sri Lanka Army Act No. 17 of 1949
- Sri Lanka Navy Act No. 34 of 1950
- Sri Lanka Police Ordinance No. 16 of 1865
- Convention on the Suppression of Terrorist Financing Act No. 25 of 2005
- The Suppression of Terrorist Bombings Act No. 11 of 1999 - Prevention of Hostage Taking Act No. 41 of 2000
- Offences Against Aircraft Act No. 24 of 1982
- Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation Act No. 31 of 1996
- Suppression of Unlawful Acts against the Safety of Maritime Navigation Act No. 42 of 2000
- Prevention and Punishment of Crimes against Internationally - Protected Persons Act No. 15 of 1991
- Prevention of Money Laundering Act No. 5 of 2006
and their subsequent amendments, subsidiary legislation, regulations, and orders.
19. Sector: All sectors
Sub-Sector -
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
Sri Lanka reserves the right to adopt or maintain any measure relating to the admission of a foreign investment into Sri Lanka under investment promotion law and its subsequent amendments, subsidiary legislation, regulations, and orders, in line with national interests, including consumer protection, customs, traditions, cultural heritage, religion, technology transfer, research and development, and social impact.
Source of Measure
- Board of Investment Law No. 4 of 1978
- Strategic Development Project Act No. 14 of 2008
- Finance Act No. 12 of 2012
- Commercial Hub Regulations
- Foreign Exchange Act No. 12 of 2017
- Companies Act No. 7 of 2007
and their subsequent amendments, subsidiary legislation, regulations, and orders.
20. Sector: All Sectors
Subsector(s): Restrictions on capital transactions carried out by Non-resident Investors
Level of Government: All levels
Type of Obligation National Treatment
Description of Measure Sri Lanka reserves the right to adopt measures with respect to capital transactions of non-resident investors. (2)
Source of Measure
- Foreign Exchange Act No. 12 of 2017, as amended and Regulations published thereof
- Securities and Exchange Commission Act No. 19 of 2021
- Companies Act No. 7 of 2007
- Local Treasury Bills Ordinance No. 8 of 1923
- Registered stock and securities Ordinance No. 7 of 1937, as amended
- Central Bank of Sri Lanka Act No. 16 of 2023
- Banking Act No. 30 of 1988
and their subsequent amendments, subsidiary legislation, regulations, and orders.
ANNEX 9C. PUBLIC DEBT
1. For the purposes of this Annex, negotiated restructuring means the restructuring or rescheduling of a debt instrument that has been effected through
(a) a modification or amendment of that debt instrument, as provided for under its terms, or;
(b) a comprehensive debt exchange or other similar process in which the holders of no less than 75 per cent of the aggregate principal amount of the outstanding debt under that debt instrument have consented to the debt exchange or other process.
2. The Parties recognise that the purchase of debt issued by a Party entails commercial risk. For greater certainty, no award shall be made in favour of a disputing investor for a claim under paragraph 7 of Article 9.24 (Settlement of Investment Disputes between a Party and an Investor of the other Party) with respect to default or non-payment of debt issued by a Party unless the disputing investor meets its burden of proving that such default or non-payment constitutes a breach of an obligation under Chapter 9 (Investment), including an uncompensated expropriation pursuant to Article 9.11 (Expropriation and Compensation).
3. No claim that a restructuring of debt issued by a Party breaches an obligation under Chapter 9 (Investment) shall be submitted to, or if already submitted, continue in, arbitration under Article 9.24 (Settlement of Investment Disputes between a Party and an Investor of the Other Party), if the restructuring is a negotiated restructuring at the time of submission, or becomes a negotiated restructuring after that submission, except for a claim that the restructuring violates Article 9.3 (National Treatment) or Article 9.4 (Most- Favoured-Nation Treatment) of Chapter 9 (Investment).
4. Notwithstanding paragraph 7 of Article 9.24 (Settlement of Investment Disputes between a Party and an Investor of the other Party), and subject to paragraph 3, an investor of the other Party shall not submit a claim under Article 9.24 (Settlement of Investment Disputes between a Party and an Investor of the Other Party) that a restructuring of debt issued by a Party breaches an obligation under Chapter 9 (Investment), other than Article 9.3 (National Treatment) or Article 9.4 (Most-Favoured-Nation Treatment) of Chapter 9 (Investment), unless 365 days have elapsed from the date of receipt by the disputing Party of the written request for consultations pursuant to paragraphs 5 and 6 of Article 9.24(Settlement of Investment Disputes between a Party and an Investor of the other Party).
Chapter 10. INTELLECTUAL PROPERTY
Article 10.1. Affirmation of the TRIPS Agreement
1. Each Party affirms its rights and obligations with respect to the other Party under the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement (the "TRIPS Agreement").
2. The protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations.
3. The Parties may, in formulating or amending their laws and regulations, adopt measures necessary to protect public health and nutrition, and to promote the public interest in sectors of vital importance to their socio-economic and technological development, provided that such measures are consistent with the provisions of the TRIPS Agreement.
4. Appropriate measures, may be needed to prevent the abuse of intellectual property rights by right holders or the resort to practices which unreasonably restrain trade or adversely affect the international transfer of technology, provided that such measures are consistent with the provisions of the TRIPS Agreement.
5. The Parties reaffirm the Doha Declaration on the TRIPS Agreement and Public Health adopted on 14 November 2001.
6. The Parties shall ensure enforcement procedures as specified in Part III of the TRIPS Agreement so as to permit effective action against any act of infringement of intellectual property rights, including expeditious remedies to prevent infringements and remedies that constitute a deterrent to future infringements. These procedures shall be applied in such a manner as to avoid the creation of barriers to legitimate trade and to provide for safeguards against their abuse.
Article 10.2. Cooperation
1. The Parties agree to promote and strengthen cooperation in the area of intellectual property rights in order to enhance their economic and trade relations. Cooperation may cover areas such as:
(a) exchange of knowledge, experiences and best practices on intellectual property issues such as geographical indications and international registration of trademarks under the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks;
(b) education and awareness relating to intellectual property; (c) intellectual property issues relevant to:
(i) genetic resources, traditional knowledge and traditional cultural expressions; and.
(ii) small and medium-sized enterprises; (d) enforcement of intellectual property rights; and (e) other activities as may be mutually agreed between the Parties.
2. All cooperation under this Article shall be at the request of a Party, on mutually agreed terms, subject to the relevant laws and regulations and availability of resources of each party.
Chapter 11. ECONOMIC COOPERATION
Article 11.1. Objectives
1. The Parties agree to establish a framework for collaborative activities as a means to expand and enhance the benefits of this Agreement for building a strategic economic partnership.
2. The Parties will establish close economic cooperation aimed, inter alia, at:
(a) strengthening and building on existing cooperative relationship between the Parties, including a focus on promoting economic and technological development, fostering innovation and encouraging research and development;
(b) stimulating productive synergies, creating new opportunities for trade, investment and tourism, and promoting competitiveness and innovation;
(c) supporting the important role of the private sector in promoting and building strategic alliances to encourage mutual economic growth and development;
(d) encouraging the presence of the Parties and their goods and services in their respective markets of Southeast Asia and South Asia;
(e) reinforce and expand cooperation, collaboration and mutual exchange in the areas of trade, investment and tourism; and
(f) increasing the level of and deepening cooperation activities between the Parties in areas of mutual interests.
Article 11.2. Scope
1. Cooperation between the Parties should contribute to achieving the objectives of this Agreement through the identification and development of innovative cooperation programmes capable of providing added value to their relations.
2. Cooperative activities will be agreed between the Parties and may include, though not limited to, encouraging the exchange of information and technical expertise, and working on joint research and collaboration in those areas.
3. Cooperation between the Parties under this Chapter will complement the cooperation and cooperative activities between the Parties set out in other Chapters of this Agreement.
4. The Parties affirm the importance of all forms of cooperation, including, but not limited to, the areas of cooperation listed in Article 11.3 (Areas of Cooperation) and other areas that the Parties may agree.
Article 11.3. Areas of Cooperation
1. the Areas of Cooperation May Include, but Are Not Limited to, the Following: (a) Trade and Investment Promotion (including Export Development); (b) Infrastructure (including Transport and Port Sector); (c) Agriculture and Agro Industry; (d) Fisheries; (e) Gems and Jewellery; (f) Tourism; (g) Small and Medium Enterprises (SMEs) and MSMEs; (h) Financial Cooperation; (i) Packaging Industry; G) Information and Communication Technology (ICT); and (k) Technical and Vocational Education and Training.
Article 11.4. Implementation of Cooperation
1. The Free Trade Commission established under this Agreement shall be the mechanism to facilitate the effective implementation of this Chapter. The Free Trade Commission may agree to establish ad hoc working group in accordance with the Free Trade Commission's term of reference.
2. The implementation of cooperation under this Chapter shall be subject to the availability of resources and the applicable laws, regulations and policies of each Party.
3. Costs of cooperation under this Chapter shall be borne by the Parties within the limits of their own capacities and through their own channels, in an equitable manner to be mutually agreed by the Parties.
4. The Parties shall designate a focal point for all matters relating to the implementation of proposed cooperation activities and shall keep the other party updated on its focal point's detail.
Article 11.5. Revision, Modification or Amendment
Proposals for review, expansion and update of this Chapter, may be submitted by either Party to the Free Trade Commission established under Chapter 14 (Institutional and Final Provisions) for consideration. Implementation of cooperation in such new areas shall proceed in accordance with and subject to the fulfilments of the requirements outlined in Article 11.4 (implementation of Cooperation).
Article 11.6. Dispute Settlement
1. The dispute settlement mechanisms in this Agreement shall not apply to any matter arising under this Chapter.
2. Any dispute concerning the interpretation, implementation or application of this Chapter shall be resolved through consultations by the Free Trade Commission established under this Agreement.
Article 11.7. Relation to other Agreements
1. Any Memorandum of Understanding, Agreements or Protocols on economic cooperation concluded between the Parties that exist before the entry into force of this Agreement shall continue to be valid.
2. The Memorandum of Understanding on Strategic Economic Partnerships, signed on 12 July 2018, shall be superseded by this Agreement six months after the date of entry into force of this Agreement. The cooperation activities under the Memorandum of Understanding on Strategic Economic Partnerships will be transferred to the Agreement and carried out under Article 11.4 (Implementation of Cooperation).
3. Cooperation under this Chapter shall be carried out alongside cooperation under other relevant Memoranda of Understanding, Agreements or Protocols that have been concluded by the Parties and are still in force.
Chapter 12. TRANSPARENCY
Article 12.1. Definition
For the purposes of this Chapter, administrative ruling of general application means an administrative ruling or interpretation that applies to all persons and fact situations that fall generally within the ambit of that administrative ruling or interpretation and that establishes a norm of conduct, but does not include:
(a) a determination or ruling made in an administrative or quasi-judicial proceeding that applies to a particular person, good, or service of the other Party in a specific case; or
(b) aruling that adjudicates with respect to a particular act or practice.
Article 12.2. Publication
1. Each Party shall ensure that its laws, regulations, procedures, and administrative rulings of general application with respect to any matter covered by this Agreement are promptly published, including on the internet where feasible, or otherwise made available in such a manner as to enable the other Party and interested persons of each Party to become acquainted with them.
2. Each Party shall, to the extent possible and practicable under its domestic law:
(a) publish in advance any such laws, regulations, procedures, and administrative rulings of general application with respect to any matter covered by this Agreement that it proposes to adopt; and