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

Bearing in mind the friendly and cooperative relations existing between the two countries and their peoples;

Intending to create favorable conditions for investments by nationals of one Contracting Party in the territory of the other Contracting Party on the basis of sovereign equality and mutual benefits; and

Recognizing that the Agreement on the Promotion and Protection of such Investments will be conducive to the stimulation of investment activities in both countries;

Have agreed as follows: