A revised income tax treaty between Singapore and Sri Lanka was signed April 3rd 2014. The treaty provides for the following withholding rates:

• Dividends - 7.5% if paid to a company that directly holds at least 25% of the capital of the paying company, otherwise 10%
• Interest - 0% if paid to a banking or financial institution, otherwise 10%
• Royalties - 10%

In Singapore, the provisions for tax wit…