State of Emergency in SL; 2nd in 2 months

‘1 million taxpayers less since 2019 tax cuts’

COLOMBO: Sri Lanka lost around 1 million taxpayers in the last two years after the Gotabaya Rajapaksa regime announced sweeping tax cuts in 2019 in its bid to spur growth, Finance Minister Ali Sabry has revealed. These tax cuts were introduced in November 2019 in keeping with President Rajapaksa's election pledges. The Cabinet had slashed the value added tax (VAT) to 8 per cent from 15% and also abolished seven other taxes.

Sri Lankan President Gotabaya Rajapaksa declared a ‘State of Emergency’ with effect from Friday midnight, according to the presidential media division.

The state of emergency gives the police and the security forces power to arbitrarily arrest and detain people.

Rajapaksa's decision was to ensure public security and maintain essential services so as to make sure a smooth functioning of the country, the presidential media division said.

The decision came amidst weeks of public protests demanding the resignation of the President and the government. Rajapaksa had declared emergency on April 1 also after a mass protest opposite his private residence. He had revoked it on April 5.

The trade unions in Sri Lanka on Friday launched a crippling island-wide strike to demand the resignation of President and his government over its inability to tackle the economic meltdown which has caused unprecedented hardships to the public.

Earlier in the day, all trade unions of health, postal, port and other government services have joined the strike. However, several pro-ruling party trade unions have declined to join. Businesses remained shut and roads were empty in the usually crowded areas.

“Over 2,000 trade unions are joining us. Still, we will provide urgent and emergency services,” Ravi Kumudesh of the Joint Trade Union Action group said.