WORLD TRADE
ORGANIZATIONS/DCS/W/LKA
24 January 2003
(03-0528)
Trade in Services Original:  English
SRI LANKA
Draft consolidated Schedule of Specific Commitments1
Attached is a draft consolidated version of the Schedule of Specific Commitments of Sri
Lanka in word format.  This document  does not substitute for the legally binding commitments
undertaken by Sri Lanka in its Schedule of Specific Commitments (GATS/SC/79;GATS/SC/79/Suppl.1; GATS/SC/79/Suppl.2)
Attached to the draft consolidated schedule is Sri Lanka's Article II (MFN) Exemption List
(GATS/EL/79) in word format.
The draft consolidated version of the Schedule and the MFN Exemption List were prepared
by the Secretariat, at the request of Members, to facilitate the process of negotiations, including the
presentation of initial offers.
_______________
                                                          
1 This document has been prepared, in English only, under the Secretariat's own responsibility and without
prejudice to the positions of Members and to their rights and obligations under the WTO.S/DCS/W/LKA
Page 2SRI LANKA – SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
I. HORIZONTAL
COMMITMENTS
ALL SECTORSINCLUDED IN THISSCHEDULE
3) Foreign Investment:  Certain limitations,
conditions and qualifications pertainspecifically to some forms of commercialpresence by foreign enterprises, as indicatedbelow:
(a) Foreign investors may invest in any sector of
the economy other than the following
activities, which are reserved for citizens ofSri Lanka:(i) Money-lending;(ii) Pawnbrokering;
(iii) Retail trade with a capital of less than 
US$1 million;
(iv) Businesses providing personal services 
other than for export of tourism;  and
(v) Coastal fishing.
(b) The foreign investment law applicable to
foreign investors is the Greater ColomboEconomic Commission (GCEC) Law No. 4 of1978, as amended to date, presently known asthe Board of Investment of Sri Lanka (BOISL)Act by G.C.E.C. (Amendment) Act No. 49 of
1992 (referred to as "the Law"), supplemented
by:  i) BOISL Regulation No. 1 of 1978, asamended to date;  and ii) BOISL RegulationNo. 1 of 1991.S/DCS/W/LKA
Page 3Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(c) The BOISL is responsible for the approval and
facilitation of foreign investment throughoutthe country, other than for investments madeby purchasing shares in the Colombo Stock
Exchange, or for investments in a number of
activities, which are regulated by otherStatutory Agencies, including the following:
(i) Banking;(ii) Financial institutions;(iii) Insurance;
(iv) Trading services on the Colombo Stock 
Exchange;
(v) Air transportation;(vi) Coastal shipping;(vii)Branch or Liaison Office of companies 
incorporated outside Sri Lanka;
(viii)Lotteries.
(d) Foreign investment of up to 40 per cent of
equity in a company proposing to carry on abusiness activity listed below other than thoselisted above will be automatically approved by
the BOISL.  Foreign investment in excess of
40 per cent (and up to 100 per cent) in acompany
proposing to carry on a business activity listedbelow other than those listed above will beapproved by the BOISL on a case-by-case
basis in consultation with the relevant State
Agencies.  This situation will be reviewedevery two years with the aim of furthersimplification.  The relevant sectors are thefollowing:S/DCS/W/LKA
Page 4Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(i) Construction and residential buildings;
(ii) Mass transportation;(iii) Telecommunications;(iv) Mass communications;
(v) Education;
(vi) Professional services;(vii)Freight- forwarding;(viii)Travel agencies;(ix) Shipping agencies.
(e) If a foreign investor wishes to locate his/her
enterprise outside any Export ProcessingZone, he/she can either purchase or lease landsuitable for his/her enterprise.  If a foreignindividual land suitable for his/her enterprise.If a foreign individual buys land, he/she will
be liable to pay a tax at 100 per cent of the
purchase price.  However, if a foreign investorincorporates a company in Sri Lanka under theCompanies Act and buys the land in the nameof the company, there will be no liability orsuch tax even though the shareholders of the
company are foreign nationals, because acompany incorporated in Sri Lanka under theCompanies Act is deemed to be equivalent toa citizen of Sri Lanka for the purpose of thistax.
- Joint venture.  In relevant sectors when a 
joint venture partner is a public sector enterprise or a government undertaking, while granting access, preference will be given to foreign service suppliers/entities, 
which offer the best terms for transfer of 
technology.S/DCS/W/LKA
Page 5Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
4) Movement of natural persons is subject to Sri
Lankan laws on immigration, consumer laws,and other relevant laws and regulations.Aliens, who intend to work or to conduct
business in Sri Lanka, shall have to obtain the
relevant work permits in addition tocomplying with the immigration requirements.
II. SECTOR SPECIFIC COMMITMENTS
2. COMMUNICATION
SERVICES
C. Telecommunication
Services
International basic voice
telecommunication services1) Monopoly guaranteed for Sri Lanka Telecom
Ltd (SLT) until 31 December 1999.
Government of Sri Lanka (GOSL) proposes
thereafter to issue an additional licence,depending mainly on satisfactory progresshaving been made with respect to tariffrebalancing.
2) None
3) Monopoly guaranteed for SLT until 31
December 1999. Government of Sri Lanka(GOSL) proposes thereafter to issue anadditional licence, depending mainly onsatisfactory progress having been made with
respect to tariff rebalancing1) None
2) None
3) NoneSri Lanka subscribes to the
attached commitments on
regulatory disciplines.
Foreign equity participation of up to 35 per
cent involving a strategic partner permitted inSLT. Foreign equity participation in telecomproviders is determined under BOISL relatedprovisions described in the horizontal section
of GOSL's schedule of specific commitments
4) Unbound except as indicated in the horizontal
section4) Unbound except as indicated in the horizontal
sectionS/DCS/W/LKA
Page 6Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Domestic local and long-
distance basic telephoneservices covered:
Mobile cellular services1) None
2) None3) Four operators' licences.  This number will be
reviewed by the GOSL in the year 2000.
Foreign equity participation in these
enterprises determined per the horizontalsection
4) Unbound except as indicated in the horizontal
section1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section
Wireless Local Loop(WLL) to provide basictelephony, datatransmission, payphone,voice mail and facsimile)1) None
2) None3) Two operators' licences. Duopoly will be
guaranteed for five years. In addition SLT willbe permitted to provide WLL services in 800MHz Band. Foreign equity participation in
these enterprises determined per the horizontal
section.
4) Unbound except as indicated in the horizontal
section1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section
Public payphone services 1) None
2) None
3) Five service providers. This number will be
reviewed on economic needs criteria. Foreignequity participation in these enterprisesdetermined per the horizontal section.
4) Unbound except as indicated in the horizontal
section1) None
2) None
3) None
4) Unbound except as indicated in the horizontal
section
Radio paging services 1) None
2) None3) Five operators' licences. Changes based on
economic needs criteria. Foreign equity
participation in these enterprises determinedper the horizontal section
4) Unbound except as indicated in the horizontal
section1) None
2) None3) None
4) Unbound except as indicated in the horizontal
sectionS/DCS/W/LKA
Page 7Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Data Communication Services 1) None
2) None3) Six operators' licences. No new licences for
facilities-based operators until 1998.  Foreign
equity participation as per horizontal section.
4) Unbound except as indicated in horizontal
section1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section
Other:
Satellite-based services:
GMPCS services supplied
through own gateways1) Unbound
2) None3) Issuing of licences is under consideration.
Foreign equity participation in theseenterprises determined per the horizontal
section.
4) Unbound except as indicated in the horizontal
section1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section
7. FINANCIAL SERVICES
I. Direct Insurance
A. Life 1) Unbound
2) Unbound3) New establishments are subject to licences
approved by the Government of Sri Lanka
(GOSL).  Foreign equity participation, in this
sector is determined per the horizontal section.
4) Unbound except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None
4) Unbound except as indicated in the horizontal
section.S/DCS/W/LKA
Page 8Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
B. Non-life 1) Unbound except in the case of insurance of
freight, where insurance is taken by the buyeror seller in accordance with contract.
2) Unbound
3) New establishment is subject to licence
approved by the Government of Sri Lanka(GOSL).  Foreign equity participation in thissector determined per the horizontal section.
4) Unbound except as indicated in the horizontal
section.1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the horizontal
section.
II. Re-insurance and
retrocession1) Reinsurance can be taken with foreign
reinsurers to the extent of the residualuncovered risk after obligatory or statutoryplacement with National InsuranceCorporation.
2) Reinsurance can be taken with foreign
reinsurance to the extent mentioned above.
3) Unbound4) Unbound except as indicated in the horizontal
section.1) Unbound
2) Unbound
3) Unbound
4) Unbound except as indicated in the horizontal
section.S/DCS/W/LKA
Page 9Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
B. Banking and Other Financial Services (excluding insurance)1
General Conditions
1. The terms of the offer in the banking and other financial services (excluding insurance) sub-sector are in accordance with GA TS, the Annex on Financial Services and
the Understanding on Commitments in Financial Services.  All the commitments are subject to entry requirements, domestic laws, rules and regulations and the terms
and conditions of the Central Bank of Sri Lanka, the Board of Investment, the Securities and Exchange Commission and any other competent authority in Sri Lanka, as
the case may be, which are consistent with Article VI of the GATS and paragraph 2 of the Annex on Financial Services.
2. Financial Services in the form of operations identified at sub-paragraphs (a) to (l) in the Schedule can be carried out in Sr i Lanka through a locally incorporated
company or a branch of a commercial bank incorporated outside Sri Lanka.
2.1 (a) Only a licensed commercial bank, a licensed specialized bank or a registered finance company may accept deposits.
(b) Only a licensed commerical bank may accept deposits which are repayable upon demand.
2.2 Approval, registration and licensing relating to banks and other financial institutions will be subject to an economic needs  test.
2.3 The total foreign shareholding in any institution providing financial services is limited to 49 per cent of the issued share  capital.
(a) Acceptance of deposits and
other repayable funds from
the public
(b) Lending of all types,
including, inter-alia,consumer credit, mortgagecredit, factoring and
financing of commercial
transactionsThe commitments listed below apply to all
services listed under B (a) to (j).
1) Unbound
2) Unbound3) As specified in the General Conditions.4) Unbound except as specified in the horizontal
commitments.The commitments listed below apply to all
services listed under B (a) to (j).
1) Unbound
2) Unbound3) As specified in the General Conditions.4) Unbound except as specified in the horizontal
commitments.
                                                          
1 This part of the schedule deals only with Section B.  Sectio n A which covers insurance and insurance related services is conta ined in a separate part of the schedule.S/DCS/W/LKA
Page 10Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(c) Financial leasing
(d) All payment and money
transmission services
(e) Guarantees and
commitments
(f) Trading for own account or
for account of customers,whether on an exchange, inan over-the-counter market
or otherwise, the following:
-m o n e y - m a r k e t  
instruments (cheques, bills, certificates of deposits, etc.)
- foreign exchange
- derivative products 
including but not limited to futures and options
- exchange rate and 
interest rate instruments, including products such as swaps, forward rate 
agreements, etc.
- transferable securities
- other negotiable 
instruments and 
financial assets, 
including bullion.S/DCS/W/LKA
Page 11Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(g) Participation in issues of all
kinds of securities,including underwriting andplacement as agent
(whether publicly or
privately) and provision ofservices related to suchissues
(h) Money broking(i) Asset management, such as
cash or portfolio
management, all forms ofcollective investmentmanagement, pension fundmanagement, custodialdepository and trust
services
(j) Settlement and clearing
services for financialservices, includingsecurities, derivativeproducts, and other
negotiable instruments
(k) Provision and transfer of
financial information, andfinancial data processingand related software by
providers of other financial
services
(l) Advisory services on all the
activities listed insubparagraphs (a) to( k)The commitments listed below apply to all
services listed under B (k) to (l).
1) None, except as provided in the General
Conditions.
2) None, except as provided in the General
Conditions.
3) As specified in the General Conditions.4) Unbound except as specified in the horizontal
commitments.The commitments listed below apply to all
services listed under B (k) to (l).
1) None, except as provided in the General
Conditions.
2) None, except as provided in the General
Conditions.
3) As specified in the General Conditions.4) Unbound except as specified in the horizontal
commitments.S/DCS/W/LKA
Page 12Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
9. TOURISM AND TRAVEL
RELATED SERVICS
A. Hotel and Lodging Services 1) Unbound∗
2) Unbound3) None except horizontal measures specified
above
4) Provisions of labour, immigration and
customs laws1) Unbound*
2) Unbound
3) None
4) None
B Travel Agency and Tour
Operation Services1) None
2) Unbound
3) None except horizontal measures specified
above
4) Provisions of labour, immigration and
customs laws1) None
2) Unbound*
3) None
4) None
__________
                                                          
∗ Unbound due to lack of technical feasibility.S/DCS/W/LKA
Page 13
REFERENCE PAPER
Scope
The following are definitions and principles on the regulatory framework for the basic telecommunications
services.
Definitions
Users mean service consumers and service suppliers.
Essential facilities mean facilities of a public te lecommunications transport network or service that
(a) are exclusively or predominantly provided by a single or limited number of suppliers;  and
(b) cannot feasibly be economically or technica lly substituted in order to provide a service.
A major supplier is a supplier which has the ability to materially affect the terms of participation (having
regard to price and supply) in the relevant market for basic telecommunications services as a result of:
(a) control over essential facilities;  or(b) use of its position in the market.
1. Competitive safeguards
1.1 Prevention of anti-competitive practices in telecommunications
Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone or
together, are a major supplier from engaging in or continuing anti-competitive practices.
1.2 Safeguards
The anti-competitive practices referred to above shall include in particular:(a) engaging in anti-competitive cross-subsidization;(b) using information obtained from compe titors with anti-competitive results;  and
(c) not making available to other services suppliers on a timely basis technical  information
about essential facilities and commercially relevant information which are necessary for
them to provide services.
2. Interconnection
2.1 This section applies to linking with supplie rs providing public telecommunications transport
networks or services in order to allow the users of one supplier to communicate with users of another
supplier and  to access services provided by another supplier, where specific commitments are undertaken.S/DCS/W/LKA
Page 14
2.2 Interconnection to be ensured
Interconnection with a major supplier will be ensu red at any technically feasible point in the
network.  Such interconnection is provided.
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) and rates and of a quality no less favourable than that provided for its own
like services or for like services of non-affiliated service suppliers or for its subsidiaries or
other affiliates;
(b) in a timely fashion, on terms, conditions (inc luding technical standards and specifications)
and cost-oriented rates that are transparent, reasonable, having regard to economicfeasibility, and sufficiently unbundled so th at the supplier need not pay for network
components or facilities that it does not require for the service to be provided;  and
(c) upon request, at points in addition to the ne twork termination points offered to the majority
of users, subject to charges that reflect th e cost of construction of necessary additional
facilities.
2.3 Public availability of the procedures for interconnection negotiations
The procedures applicable for interconnection to a major supplier will be made publicly available.
2.4 Transparency of interconnection arrangements
It is ensured that a major supplier will make publicly available either its interconnection agreements
or a reference interconnection offer.
2.5 Interconnection:  dispute settlement
A service supplier requesting interconnection with a major supplier will have recourse, either:
(a) at any time or
(b) after a reasonable period of time which has been made publicly known
to an independent domestic body, which may be a regulatory body as referred to in paragraph 5 below, to
resolve disputes regarding appropriate terms, conditi ons and rates for interconnection within a reasonable
period of time, to the extent that these have not been established previously.
3. Universal service
Any Member has the right to define the kind of universal service obligation it wishes to maintain.
Such obligations will not be regarded as anti-competitive per se , provided they are administered in a
transparent, non-discriminatory and competitively neutral manner and are not more burdensome than
necessary for the kind of universal service defined by the Member.S/DCS/W/LKA
Page 15
4. Public availability of licensing criteria
Where a licence is required, the following will be made publicly available:
(a) all the licensing criteria and the period of time normally required to reach a decision
concerning an application for a licence  and
(b) the terms and conditions of  individual licences.
The reasons for the denial of a licence will be made known to the applicant upon request.
5. Independent regulators
The regulatory body is separate from, and not accountable to, any supplier of basic
telecommunications services. The decisions of and the pr ocedures used by regulators shall be impartial with
respect to all market participants.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of scarce resources, including frequencies, numbers and
rights of way, will be carried out in an objective,  timely, transparent and non-discriminatory manner. The
current state of allocated frequency bands will be ma de publicly available, but detailed identification of
frequencies allocated for specific government uses is not required.
____________S/DCS/W/LKA
Page 16
SRI LANKA – FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS
Sector or SubsectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating  the need for
the exemption
2. COMMUNICATION
C. Telecommunication
Services -
International servicesMeasures including the
application of different
accounting rates for differentoperators/countries covered byInternationalTelecommunication Services
Agreements between Sri Lanka
Telecom Limited and variousforeign operators.Countries covered by
International
Telecommunication ServicesAgreements between Sri LankaTelecom Limited and foreignoperators.Indefinite On account of bilateral agreements
between Sri Lanka Telecom Limited
and various foreign operators dealingwith various aspects of cooperation.
TelecommunicationServices -
International servicesMeasures including the
application of different
accounting rates for different
neighbouring countries coveredby TelecommunicationAgreements entered into by theGovernment of Sri Lanka withgovernments of neighbouring
countries.Neighbouring countries of the
South Asian Association for
Regional Cooperation
(SAARC), viz. Bangladesh,Bhutan, India, Maldives, Nepaland Pakistan.Indefinite On account of bilateral agreements
with governments of neighbouring
countries.
__________