Sri Lanka and Maldives Advance Double Taxation Agreement Talks to Boost Bilateral Trade
July 24, 2025 | Ethera Business News
Taxation | Sri Lanka – Maldives Relations | Policy Development
Sri Lanka and the Maldives are making significant progress in finalizing a Double Taxation Avoidance Agreement (DTAA), aimed at reducing fiscal barriers and enhancing cross-border investment between the two countries.
The proposed agreement, currently under negotiation between the finance ministries of both nations, seeks to eliminate the double taxation of income earned in either country by residents or businesses of the other. This move is expected to improve investor confidence and stimulate bilateral trade and professional services.
Key Benefits of the DTAA:
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Eliminates double taxation on income from employment, services, dividends, royalties, and capital gains
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Promotes investment by providing tax clarity and preventing fiscal evasion
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Supports labor mobility, especially for Sri Lankan professionals and companies operating in the Maldives
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Strengthens trade relations by creating a transparent and predictable tax environment
Officials from the Sri Lankan High Commission in Malé confirmed that technical discussions have concluded, and both governments are now working on the legal and diplomatic processes required for signing.
“This agreement will remove tax-related uncertainties and encourage more Sri Lankan businesses to expand into the Maldives. It’s a critical enabler of our growing economic partnership,” a senior trade official in Colombo stated.
The DTAA is part of a broader initiative to strengthen economic relations between Sri Lanka and the Maldives, with additional collaborations underway in tourism, education, logistics, and health services.
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