The Cabinet of Ministers has approved a proposal to sign a convention between Sri Lanka and Austria to prevent double taxation on income and capital, and to curb tax avoidance and evasion.

The agreement, presented by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning, and Economic Development, is expected to foster stronger economic ties between the two nations.

While some tax revenue may be forgone due to concessions under the convention, the Government anticipates significant benefits through increased foreign investment and higher foreign exchange inflows.

The legal framework will help create a more favorable environment for Austrian investors in Sri Lanka and promote economic cooperation between the two countries.