ORGANISATION MONDIALE  
DU COMMERCE  S/DCS/W/LKA 
24 janvier 2003 
 (03-0528) 
Commerce des services Original:   anglais 
  
 
SRI LANKA  
 
Projet de version codifiée de la Liste d'engagements spécifiques
1 
 
 
 On trouvera ci-joint un projet de version codi fiée de la Liste d'engagements spécifiques du Sri 
Lanka en format Word.  Ce document ne remplace  pas les engagements juri diquement contraignants 
souscrits par le Sri Lanka dans sa List e d'engagements spéci fiques (GATS/SC/79; 
GATS/SC/79/Suppl.1; GATS/SC/79/Suppl.2).  
 Est joint au projet de liste codifiée la List e d'exemptions de l'article II (NPF) du Sri Lanka 
(GATS/EL/79) en format Word.   Le projet de version codifiée de la liste et la Liste d'exemptions de l'obligation NPF ont été 
établis par le Secrétariat, à la demande des Memb res, pour faciliter le processus de négociation, y 
compris la présentation des offres initiales. 
 
_______________ 
 
  
 
  
                                                     
 
1 Le présent document a été établi, en anglais seulemen t, par le Secrétariat sous sa propre responsabilité 
et sans préjudice des positions des Membres ni de le urs droits et obligations dans le cadre de l'OMC.  
 S/DCS/W/LKA 
Page 2 SRI 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 Limi tations on  National Treatm ent Additional Commitments 
I. HORIZONTAL 
COMMITMENTS    
 
 ALL SECTORS 
INCLUDED IN THIS SCHEDULE    
 3) Foreign Investment :  Certain limitations, 
conditions and qualifications pertain 
specifically to some forms of commercial presence by foreign enterprises, as indicated 
below: 
   
 (a) Foreign investors may invest in any sector of 
the economy other than the following 
activities, which are reserved for citizens of Sri 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 Colombo Economic Commission (GCEC) Law No. 4 of 
1978, as amended to date, presently known as 
the 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, as amended to date;  and ii) BOISL Regulation 
No. 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 Limi tations on  National Treatm ent Additional Commitments 
 (c) The BOISL is responsible for the approval and 
facilitation of foreign investment throughout the country, other than for investments made 
by purchasing shares in the Colombo Stock 
Exchange, or for investments in a number of activities, which are regulated by other 
Statutory Agencies, in cluding 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 Liai son 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 a 
business activity listed below other than those 
listed above will be automatically approved by 
the BOISL.  Foreign investment in excess of 40 per cent (and up to 100 per cent) in a 
company     
 S/DCS/W/LKA 
Page 4 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 Limi tations on  National Treatm ent Additional Commitments 
  proposing to carry on a business activity listed 
below other than those listed above will be approved by the BOISL on a case-by-case 
basis in consultation with the relevant State 
Agencies.  This situation will be reviewed every two years with the aim of further 
simplification.  The relevant sectors are the 
following: 
   
  (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 Processing 
Zone, he/she can either purchase or lease land 
suitable for his/her enterprise.  If a foreign 
individual 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 investor incorporates a company in Sri Lanka under the 
Companies Act and buys the land in the name 
of the company, there will be no liability or such tax even though the shareholders of the   
  company are foreign nationals, because a 
company incorpor ated in Sri Lanka under the 
Companies Act is deemed to be equivalent to 
a citizen of Sri Lanka for the purpose of this 
tax. 
    
  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 Limi tations on  National Treatm ent Additional Commitments 
 
  - 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.  
  
 
 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 to 
complying with the immigration requirements. 
  
 
 
II. SECTOR SPECIFIC COMMITMENTS 
 
2. COMMUNICATION 
SERVICES 
    
C. Telecommunication 
Services  
    
 International basic voice 
telecommunication services 
 1) 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 progress having been made with respect to tariff 
rebalancing. 
2) None 3) Monopoly guaranteed for SLT until 31 
December 1999. Government of Sri Lanka 
(GOSL) proposes thereafter to issue an additional licence, depending mainly on 
satisfactory progress having been made with 
respect to tariff rebalancing 1) None 
  
 
  
 
2) None 3) None 
 
  
 
 Sri Lanka subscribes to the  
attached commitments on regulatory disciplines. 
  
 S/DCS/W/LKA 
Page 6 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 Limi tations on  National Treatm ent Additional Commitments 
  Foreign equity participation of up to 35 per 
cent involving a strategic partner permitted in SLT. Foreign equity participation in telecom 
providers is determined under BOISL related 
provisions described in the horizontal section of GOSL's schedule of specific commitments 
4) Unbound except as indi cated in the horizontal 
section  
  
 
  
4) Unbound except as indi cated in the horizontal 
section  
Domestic local and long-
distance basic telephone 
services covered: 
  Mobile cellular services 
 1) None 
2) None 
3) Four operators' licences.  This number will be 
reviewed by the GOSL  in the year 2000. 
Foreign equity participation in these 
enterprises determined per the horizontal 
section 
4) Unbound except as indi cated in the horizontal 
section 
 1) None 
2) None 
3) None 
  
 
 4) Unbound except as indi cated in the horizontal 
section 
  
 
 Wireless Local Loop 
(WLL) to provide basic 
telephony, data 
transmission, payphone, 
voice mail and facsimile) 
 1) None 
2) None 
3) Two operators' licences. Duopoly will be 
guaranteed for five years.  In addition SLT will 
be permitted to provide WLL services in 800 MHz Band. Foreign equity participation in 
these enterprises determin ed per the horizontal 
section. 
4) Unbound except as indi cated in the horizontal 
section 
 1) None 
2) None 
3) None 
 
  
 
 4) Unbound except as indi cated in the horizontal 
section 
  
 
Public payphone services  1) None 
2) None 
3) Five service providers. This number will be 
reviewed on economic needs criteria. Foreign 
equity participation in these enterprises 
determined per the horizontal section. 
4) Unbound except as indi cated in the horizontal 
section 
 1) None 
2) None 
3) None  
 
 4) Unbound except as indi cated in the horizontal 
section 
  
  
  S/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 Limi tations on  National Treatm ent Additional Commitments 
Radio paging services 
 1) None 
2) None 3) Five operators' licences. Changes based on 
economic needs criteria. Foreign equity 
participation in these enterprises determined per the horizontal section 
4) Unbound except as indi cated in the horizontal 
section 1) None 
2) None 3) None 
 
  
4) Unbound except as indi cated in the horizontal 
section  
 
Data Communication Services  1) None 
2) None 
3) Six operators' licences. No new licences for 
facilities-based operators until 1998.  Foreign equity participation as per horizontal section. 
4) Unbound except as i ndicated in horizontal 
section 
 1) None 
2) None 
3) None 
  
4) Unbound except as indi cated in the horizontal 
section 
  
 
Other:  Satellite-based services:  
  
  
 
GMPCS services supplied through own gateways 
 1) Unbound 
2) None 
3) Issuing of licences is under consideration. 
Foreign equity participation in these enterprises determined per the horizontal 
section. 
4) Unbound except as indi cated in the horizontal 
section 
 1) None 
2) None 
3) None 
  
 
4) Unbound except as indi cated in the horizontal 
section 
  
  
 S/DCS/W/LKA 
Page 8 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 Limi tations on  National Treatm ent Additional Commitments 
7. FINANCIAL SERVICES 
    
I. Direct Insurance  
    
 A. Life 
 1) Unbound 
2) Unbound 3) 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 indi cated in the horizontal 
section. 1) Unbound 
2) Unbound 3) None 
 
  
4) Unbound except as indicated in the horizontal 
section.  
 B. Non-life 
 1) Unbound except in the case of insurance of 
freight, where insurance is taken by the buyer 
or 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 this 
sector determined per the horizontal section. 
4) Unbound except as indi cated in the horizontal 
section. 
 1) Unbound 
 
 2) Unbound 
3) None 
  
 
4) Unbound except as indi cated in the horizontal 
section. 
  
II. Re-insurance and 
retrocession 
 1) Reinsurance can be taken with foreign 
reinsurers to the extent of the residual 
uncovered risk after obligatory or statutory placement with National Insurance 
Corporation. 
2) Reinsurance can be taken with foreign 
reinsurance to the exte nt mentioned above. 
3) Unbound 
4) Unbound except as indi cated in the horizontal 
section. 1) Unbound 
 
  
 
2) Unbound  
3) Unbound 
4) Unbound except as indi cated 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 Limi tations on  National Treatm ent 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 insu rance) sub-sector are in accordance with G ATS, the Annex on Financial Services and 
the Understanding on Commitments in Financial Services.  All the commitments are subject to entr y 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 S ri 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 accep t 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 nee ds test. 
 
 2.3 The total foreign shareholding in any institution providing financial services is limited to 49 per cent of the issued sha re capital. 
 
 
(a) Acceptance of deposits and 
other repayable funds from the public 
(b) Lending of all types, 
including, inter-alia, consumer credit, mortgage 
credit, factoring and 
financing of commercial transactions  
 The commitments listed below apply to all 
services listed under B (a) to (j). 
 
1) Unbound 
2) Unbound 3) As specified in the General Conditions. 
4) Unbound except as speci fied in the horizontal 
commitments.  
 The commitments listed below apply to all 
services listed under B (a) to (j). 
 
1) Unbound 
2) Unbound 3) 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.  Section A which covers insurance and insu rance related services is conta ined in a separate part of the 
schedule.  
 S/DCS/W/LKA 
Page 10 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 Limi tations on  National Treatm ent 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, in an over-the-counter market 
or otherwise, the following: 
    
 - money-market 
 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 Limi tations on  National Treatm ent Additional Commitments 
(g) Participation in issues of all 
kinds of securities, including underwriting and 
placement as agent 
(whether publicly or privately) and provision of 
services related to such 
issues    
(h) Money broking 
(i) Asset management, such as 
cash or portfolio 
management, all forms of collective investment 
management, pension fund 
management, custodial depository and trust 
services  
 
  
 
  
(j) Settlement and clearing 
services for financial 
services, including 
securities, derivative 
products, and other 
negotiable instruments 
    
(k) Provision and transfer of 
financial information, and financial data processing 
and related software by 
providers of other financial services 
(l) Advisory services on all the 
activities listed in subparagraphs (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 speci fied 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 12 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 Limi tations on  National Treatm ent Additional Commitments 
9. TOURISM AND TRAVEL 
RELATED SERVICS 
    
A. Hotel and Lodging Services  
 1) Unbound∗ 
2) Unbound 
3) None except horizont al measures specified 
above 
4) Provisions of labour, immigration and 
customs laws 
 1) Unbound* 
2) Unbound 
3) None  
4) None 
  
B Travel Agency and Tour 
Operation Services  
 1) None 
2) Unbound 
3) None except horizont al measures specified 
above 
4) Provisions of labour, immigration and 
customs laws 1) 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 th e basic telecommunications 
services.    Definitions
 
 Users
 mean service consumers and service suppliers.   
 
Essential facilities  mean facilities of a public telecommunica tions 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 material ly 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 continui ng 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 competitors with anti-competitive results;  and   (c) not making available to other servic es suppliers on a timely basis technical  information 
about essential facilities a nd commercially relevant inform ation which are necessary for 
them to provide services.  
 2. Interconnection
 
 2.1 This section applies to linki ng with suppliers 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 serv ices provided by another supplier, wher e 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 interc onnection is provided. 
 
 (a) under non-discriminatory terms, cond itions (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 serv ice suppliers or for its subsidiaries or 
other affiliates; 
 
 (b) in a timely fashion, on terms, conditions (including technical standards and specifications) 
and cost-oriented rates that are transparen t, reasonable, having regard to economic 
feasibility, and sufficiently unbundled so th at the supplier need not pay for network 
components or facilities that it does not requi re 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 the 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 ma de publicly available. 
  2.4 Transparency of interconnection arrangements
 
 
 It is ensured that a major supp lier will make publicly available eith er its interconnection agreements 
or a reference inte rconnection offer. 
  
2.5 Interconnection:  dispute settlement
 
  A service supplier requesting in terconnection with a major supplie r 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 regul atory body as referred to in paragraph 5 below, to 
resolve disputes regarding appropria te terms, conditions a nd rates for interconnection within a reasonable 
period of time, to the extent that thes e have not been established previously. 
 
3. Universal service
 
  Any Member has the right to define the kind of uni versal 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 a nd 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 w ill be made known to the applicant upon request. 
 
 5. Independent regulators
 
  The regulatory body is separa te from, and not accountable  to, any supplier of basic 
telecommunications services. The decisions of and the pr ocedures used by regulator s shall be impartial with 
respect to all market participants.   6. Allocation and use of scarce resources
 
 
 Any procedures for the allocation and use of scar ce 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 made publicly availabl e, but detailed identification of 
frequencies allocated for specific government uses is not required. 
 
 
_______________ 
  
 S/DCS/W/LKA 
Page 16 
SRI LANKA – FINAL LIST OF AR TICLE II (MFN) EXEMPTIONS 
 
Sector or Subsector Description of measure 
indicating its inconsistency 
with Article II Countries to which the 
measure applies Intended duration Conditions creating the need for 
the exemption 
2. COMMUNICATION 
     
C. Telecommunication 
Services - 
International services 
 Measures including the 
application of different 
accounting rates for different operators/countries covered by 
International 
Telecommunication Services 
Agreements between Sri Lanka 
Telecom Limited and various foreign operators. 
 Countries covered by 
International 
Telecommunication Services Agreements between Sri Lanka 
Telecom Limited and foreign 
operators. 
 Indefinite 
 On account of bilateral agreements 
between Sri Lanka Telecom Limited 
and various foreign operators dealing with various aspects of cooperation. 
 
 Telecommunication 
Services - 
International services 
 Measures including the 
application of different 
accounting rates for different 
neighbouring countries covered by Telecommunication 
Agreements entered into by the 
Government of Sri Lanka with governments of neighbouring 
countries. Neighbouring countries of the 
South Asian Association for 
Regional Cooperation 
(SAARC), viz. Bangladesh, Bhutan, India, Maldives, Nepal 
and Pakistan. 
 Indefinite 
 On account of bilateral agreements 
with governments of neighbouring 
countries. 
 
 
 
__________