Investment Agreement between Sri Lanka and Australia

COLOMBO: The Investment Promotion and Protection Agreement between Sri Lanka and Australia came into force with effect from March 14 with the completion by the Australian authorities of its domestic procedures for the entry into force of the Agreement.

Sri Lanka had completed its internal legal requirements in February 2006. The Agreement sets out the State to State guarantees with regard to promotion and protection of investments, standards of treatment of investments, compensation for losses, including in the event of expropriation or nationalisation and provision relating to settlement of investment disputes.

Australia is ranked the second largest investor in Sri Lanka and the entry into force of the Bilateral Investment Promotion and Protection Agreement is expected to generate a greater flow of Australian investments into Sri Lanka through the creation of an appropriate legal environment for such investment flows.