ORGANIZACIÓN MUNDIAL  
DEL COMERCIO  S/DCS/W/LKA 
24 de enero de 2003 
 (03-0528) 
Comercio de Servicios Original:   inglés 
  
 
 
SRI LANKA 
 
Proyecto de Lista refundida de Compromisos Específicos
1 
  
 El documento adjunto contiene un proyect o de la Lista refundida de Compromisos 
Específicos de Sri Lanka, en formato Word.  Este documento no sustituye los compromisos 
jurídicamente contraídos por Sri Lanka, en su Lista de Compromisos Específicos (GATS/SC/79; 
GATS/SC/79/Suppl.1; GATS/SC/79/Suppl.2) 
 
 Adjunto al proyecto de la Lista figura la Lista de Exenciones del Artículo II (NMF) (GATS/EL/79) en formato Word.   Los proyectos de la Lista y de la Lista de Exenciones del trato NMF fueron preparados por la 
Secretaría, a petición de los Miembros, para facilit ar el proceso de las negociaciones, incluida la 
presentación de ofertas iniciales. 
  
_______________  
 
                                                      
1 Este documento se ha preparado, en inglés solament e, bajo la responsabilidad de la Secretaría y sin 
perjuicio de las posiciones de los Miembros ni de sus derechos y obligaciones en el marco de la OMC.  
 S/DCS/W/LKA 
Página 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 Limitations on  National Treatment 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. 
    
  S/DCS/W/LKA
 Página 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 Limitations on  National Treatment Additional 
Commitments 
 (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.   
 (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, 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. 
    
 S/DCS/W/LKA 
Página 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 Limitations on  National Treatment Additional 
Commitments 
 (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    
  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. 
    
  S/DCS/W/LKA
 Página 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 Limitations on  National Treatment Additional 
Commitments 
 (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 incorporated in Sri Lanka under 
the Companies Act is deemed to be 
equivalent to a citizen of Sri Lanka for the purpose of this tax. 
   
   - 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 
Página 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 Limitations on  National Treatment Additional 
Commitments 
  4) Movement of natural persons is subject to 
Sri Lankan laws on immigration, consumer laws, and ot her 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
 Página 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 Limitations on  National Treatment 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 indicated in the 
horizontal section  
    
 
4) Unbound except as indicated 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 indicated in the 
horizontal section 
 1) None 
2) None 
3) None    
 
4) Unbound except as indicated 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 determined per the horizontal section. 
4) Unbound except as indicated in the 
horizontal section 
 1) None 
2) None 3) None  
 
   4) Unbound except as indicated in the 
horizontal section 
  
  
 S/DCS/W/LKA 
Página 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 Limitations on  National Treatment Additional 
Commitments 
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 indicated in the 
horizontal section 
 1) None 
2) None 3) None   
 
4) Unbound except as indicated in the 
horizontal section 
  
 
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 indicated in the 
horizontal section 1) None 
2) None 
3) None    
4) Unbound except as indicated in the 
horizontal section  
 
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 indicated in horizontal 
section 
 1) None 
2) None 3) None   4) Unbound except as indicated in the 
horizontal section 
  
 
Data Communication 
Services 
    
 
  Other:  
Satellite-based services:    
  
  
  S/DCS/W/LKA
 Página 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 Limitations on  National Treatment Additional 
Commitments 
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 indicated in the 
horizontal section 
 1) None 
2) None 3) None   
 
4) Unbound except as indicated in the 
horizontal section 
  
 
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 indicated in the 
horizontal section. 1) Unbound 
2) Unbound 
3) None 
   4) Unbound except as indicated in the 
horizontal section.   
 S/DCS/W/LKA 
Página 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 Limitations on  National Treatment Additional 
Commitments 
 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 indicated in the 
horizontal section. 
 1) Unbound 
  2) Unbound 3) None 
 
  4) Unbound except as indicated 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 extent mentioned above. 
3) Unbound 4) 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
 Página 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 Limitations on  National Treatment Additional 
Commitments 
B. Banking and Other Financial Se rvices (excluding insurance)2 
  General Conditions
 
 1. The terms of the offer in the banking a nd other financial services (e xcluding insurance) sub-sector are in accordance with G ATS, the Annex on 
Financial Services and the Unde rstanding on Commitments in Financ ial Services.  All the commitments are subject to entry requir ements, domestic 
laws, rules and regulations and the terms a nd conditions of the Central Bank of Sri Lanka, the Board of Investment, the Securit ies 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 s ub-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 co mmercial bank incorporated outside Sri Lanka. 
  2.1 (a) Only a licensed commercial bank, a licensed specializ ed 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 rela ting to banks and other financial instituti ons 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 specified 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.  
                                                      
 2 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 
Página 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 Limitations 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, 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.     
  S/DCS/W/LKA
 Página 13Modes 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 Limitations on  National Treatment Additional 
Commitments 
 - transferable 
securities 
  - other negotiable 
 instruments and  financial assets, 
 including bullion.    
(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 
   
  
 S/DCS/W/LKA 
Página 14 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 Limitations on  National Treatment Additional 
Commitments 
(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 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.  
 
9. TOURISM AND 
TRAVEL RELATED SERVICS 
    
A. Hotel and Lodging 
Services  
 1) Unbound∗ 
2) Unbound 
3) None except horizontal 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 horizontal 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 
 Página 15 
 
 
 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 facili ties and commercially relevant info rmation which are necessary for 
them to provide services.  
 2. Interconnection
 
 2.1 This section applies to linking 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 
Página 16  
 
 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 service supplie rs 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 transparent, 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 these 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 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 
 Página 17 
 
 
 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 separate from, and not accountable to, any supplier of basic 
telecommunications services. The decisions of and the procedures 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 made publicly availabl e, but detailed identification of 
frequencies allocated for specific government uses is not required.  
____________  
 S/DCS/W/LKA 
Página 18 
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. COMMUNICATI
ON 
     
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. 
 
 Telecommunicatio
n 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.  
 
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