Sri Lanka unions stage strike to protest against tax policy

In Sri Lanka, over 40 trade unions are on a strike from Wednesday morning, protesting against the government’s tax policy. Trade unions attached to the ports, doctors, nursing, water, power, teachers, and banking sectors have announced their participation. Several government services are reported to be hampered due to the strike and fewer vehicles were seen on the roads. Stating that they are willing to pay the necessary taxes, the trade unionists stated they are against paying unfair taxes that have been imposed by the government. Meanwhile, Cabinet spokesman and Minister Dr. Bandula Gunawardena told the media that the law will be strict against persons who violate orders regarding the declaration of essential services. Dr. Gunawardena said that the government has taken these decisions with the objective of maintaining public services continuously for the well-being of people’s lives. At the same time, the General Manager of Sri Lanka Railways W.A.D.S. Gunasingle has said that railways will work as usual today as it is an essential service. He said that the leave of all staff has been cancelled. In addition, the government has issued a gazette notification declaring postal services as an essential service. 

The Sri Lanka government had sharply raised personal income taxes with effect from the 1st of January this year to increase government revenue. The tax hikes were a part of the requirement under the staff-level agreement with IMF that Sri Lanka had finalised in September last year. Sri Lanka has been making efforts to unlock a 2.9 billion dollar package from the global lender. The island nation has obtained financing assurances from its creditors and is awaiting the approval of the extended fund facility from the IMF board which will consider the package next Monday. Trade unions have been protesting the tax hikes and urging the government to reverse the tax policy on the crisis hit island.