India Sri Lanka DTAA amended

The Ministry of Finance has notified the Protocol amending the India–Sri Lanka DTAA. Although the Protocol entered into force on 19 June 2026, its provisions will apply in India for income derived in fiscal years beginning on or after 1 April following the calendar year in which it entered into force. The amendment introduces a Principal Purpose Test, significantly restricting treaty benefits where obtaining such benefits was one of the principal purposes of an arrangement.