Sri Lankan state workers on strike, protesting against high taxes

Sri Lankan health railway port and other state workers were on a daylong strike Wednesday to protest against sharp increases in income taxes and electricity charges as the island nation awaits approval of an International Monetary Fund package to aid its bankrupt economyMost government hospitals around the country suspended their outpatient clinics because doctors nurses and pharmacists were on strike The railways operated fewer trains and armed soldiers guarded carriages and train stations fearing sabotageTrade unions say the increase in taxes and electricity charges have hit them hard amid difficulties from the countrys worst economic crisis They have threatened to extend the strike indefinitely if the government fails to address their demandsThe government says it was compelled to raise taxes to strengthen state revenue and electricity charges to cover production costs key prerequisites to unlocking the proposed USD 29 billion IMF package Authorities say they managed to operate some trains and most state banks despite the strikeIMF Managing Director Kristalina Georgieva said last week the funds board will meet on March 20 to consider the final approval of Sri Lankas bailout package after China gave crucial debt restructuring assurancesSri Lanka announced last year it was suspending repayment of its foreign loans amid a severe foreign currency crisis that resulted in shortages of fuel food medicines and cooking gas along with long power cuts The crisis led to street protests that forced thenPresident Gotabaya Rajapaksa to flee the country and resignAlso Read Judge threats case Warrant against former prime minister Imran Khan suspendedPresident Ranil Wickremesinghe since taking over last July has managed to end the power cuts and reduce shortagesThe Central Bank has said the countrys reserves have improved and Sri Lankas rupee has started to strengthen after crashing last year The Central Bank has wrested back control of foreign currency trade from the black market the monetary authority saysHowever critics say the strengthening of the currency might be linked to import controls and that it is bound to weaken once the country reopens for importsWickremesinghe told Parliament last week that difficult reforms are needed to remain on course with the IMF program Sidestepping them as the country has done on 16 previous occasions could spell danger he added noting that any breakdown would compel Sri Lanka to repay USD 67 billion of foreign debt every year until 2029However he found no support from the opposition parties and the public who say he is shielding the ousted Rajapaksa family from allegations of corruption which they say caused the economic crisis in return for their support for his presidencyThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever