Sri Lanka: a new national strike to protest against tax hikes

Sri Lankans wait for a train as the railways were at a standstill Wednesday, March 15, 2023. AFP - ISHARA S. KODIKARA

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Sri Lanka's ports, hospitals, schools and railways were at a standstill on Wednesday 15 March. A strike by civil servants to protest the cost of living as the country raises taxes. The Indian Ocean island is hoping for help from the International Monetary Fund to get out of the financial abyss.

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With our correspondent in Bangalore, Côme Bastin

Higher taxes, rising electricity bills, an exploding cost of living: after several years of economic crisis, this is too much for part of the Sri Lankan population who protested on Wednesday, March 15.

These unpopular reforms are aimed at enlisting assistance from the International Monetary Fund. "On March 20, Sri Lanka hopes to get help from the IMF to pay off its debt," said Umesh Moramandali, an economist at the University of Colombo. Taxes have risen significantly, which has mechanically lowered wages. That's why doctors, professors and various public bodies went on strike.

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The IMF's fiscal austerity plan

Indebted as never before in its history, Sri Lanka must now repay 5.6 billion euros per year to its donors. The IMF should provide half of it and participate in the restructuring of this debt, but it requires a fiscal austerity plan in return. "It is very difficult to imagine alternatives, because the economic crisis is terrible. The IMF's debt reduction targets are very strict. But given the popular anger, we can imagine a slight relief once the agreement is signed, "says Umesh Moramandali.

Maritime trade, transport and the hospital system were severely disrupted on Wednesday without any major incidents to be deplored.

► Read also Independence of Sri Lanka: "After the uprising of 2022, this February 4 is not a banal anniversary date"

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  • Sri Lanka
  • Economic crisis