COLOMBO, July 7, 2011 (WAFA) – Palestine and Sri Lanka signed an initial agreement Thursday in the income tax department in Colombo to avoid double taxation and prevent fiscal evasion.

The agreement was signed by Hashem Drouby, head of income tax audit and control in the Palestinian ministry of finance, and by the General Manager of Income Tax in Sri Lanka, Kanda Kumara.

Palestinian Ambassador to Sri Lanka and the Maldives, Anwar al-Agha, said the agreement comes within the context of the friendly historical relations between Palestine and Sri Lanka and aims to regulate the area of taxation between them.

He added that it falls under the procedures and activities being undertaken by the Palestinian Authority towards building and enhancing Palestinian institutions and working to encourage investment and strengthen relationships with countries worldwide.

Palestine has already signed agreements to avoid double taxation and prevent fiscal evasion with a number of countries and continues negotiations with others to sign similar agreements.

F.J.