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HMRC internal manual

Double Taxation Relief Manual

Sri Lanka: Interest

Interest arising in Sri Lanka can be taxed in both the United Kingdom and Sri Lanka . The Sri Lanka tax is only restricted to 10 per cent of the gross amount of interest where it is paid in respect of a debt-claim first created after 21 June 1979 (Article 11(2)).

Article 11(3), (5) and (6) provides complete exemption from Sri Lanka tax on interest in certain circumstances, for example, where the lender is a bank or financial institution.