The Government of the Democratic Socialist Republic of Sri Lanka and the Government of the Republic of India (hereinafter referred to as the "Contracting Parties");

Desiring to create conditions favorable for fostering greater investment by investors of one State in the territory of the other State;

Recognizing that the encouragement and reciprocal protection under international agreement of such investment will be conducive to the stimulation of individual business initiative and will increase prosperity in both States;

Have agreed as follows: