GS2The Indian Express · Current Affairs
India amends tax treaty with Sri Lanka to plug avoidance
India and Sri Lanka have revised their bilateral tax treaty to reduce tax avoidance and strengthen cross-border tax enforcement.
SP
Samachar Pathshala Desk
Published 19 Jul 2026 · 1 min
Key takeaways
- India and Sri Lanka have a revised bilateral tax treaty that aims to tighten the taxation of cross-border income and reduce avoidance.
What happened
India has amended its tax treaty with Sri Lanka to curb tax avoidance and improve cross-border tax enforcement. The revised agreement strengthens the way income is taxed between the two countries and closes loopholes that could be used for avoidance.
The UPSC angle
GS2GS3
India-Sri Lanka tax treaty amendment as a test case in international taxation and treaty-based anti-avoidance
UPSC can frame India’s amendment of the tax treaty with Sri Lanka around double taxation avoidance agreements, treaty shopping, tax avoidance, and the balance between investment facilitation and revenue protection. A mains answer can also connect the amendment to India’s broader effort to strengthen tax compliance in cross-border transactions.
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