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Anti-tax strikes threaten to bring Lanka’s ailing economy to standstill
ECONOMYNEXT –Trade unions representing medical, banking and other sectors in Sri Lanka are on strike at significant cost to the cash-strapped island nation’s ailing economy, demanding that an IMF-backed tax hike be revoked.
Broadcast media reported that patients visiting OPD clinics at a number of state hospitals in Anuradhapura, Polonnaruwa and elsewhere were inconvenienced as doctors, who are among the highest-earning professionals in the country, refused to report to work on Wednesday March 01 as part of trade union action against a controversial progressive tax regime.
The trade union action included strikes, token strikes, sick leave and other measures. Some 40 trade unions representing the state sector and some private entities were engaged in the campaign around the island against the 6 to 36 percent personal income taxation on people earning over 100,000 rupees a month.
Wednesday’s strike is the latest in a series of campaigns launched by trade unions demanding that the government withdraw the new tax policy, which the government says is vital at least for the time being while Sri Lanka recovers from its worst currency crisis in decades.
Sources close to the government recently claimed that the International Monetary Fund (IMF), whose broad approval for a much needed 2.9 billion US dollar loan has yet to be given, had recommended that Sri Lanka’s income tax threshold be lowered to 45,000 rupees but the government negotiated to keep it at 100,000.
The tax hike has been met with stiff resistance from various professional associations and trade unions, with low-intensity demonstrations held in Colombo and elsewhere since January, demanding its withdrawal. These professionals include doctors, university lecturers, banking sector employees and others who earn significantly more than a vast majority of the public. Some doctors collect substantial earnings through private practice.
Wednesday’s strike and protests was the biggest anti-tax agitation held yet. Banks, both state and some private, were closed in Galle, Hatton and other cities, according to reports.
“Stop the brain drain,” was a prominent slogan at one of the anti-tax protests held on Wednesday, “brain drain” being one of the key arguments used against the tax hike.
The Government Medical Officers Association (GMOA) has been at the forefront of the trade union action. GMOA secretary Dr Haritha Aluthge told reporters on Wednesday that there is a danger of more and bigger campaigns being launched in the future without warning.
“We ask the government to listen to the concerns raised by professionals and the people,” he said.
Sri Lanka’s new tax regime has both its defenders and detractors, both equally vociferous. Critics who are opposed to progressive taxation said it serves as a disincentive to industry and capital which can be invested in business. They argue that a flat rate of taxation is implemented where everyone is taxed at the same rate.
Others, however, contend that the new taxes only affect some 10-12 percent of the population and, given the country’s economic situation, is necessary, if not vital.
Critics of the protesting workers argue that most of the workers earn high salaries that most ordinary people can only dream of, and though there may be some cases where breadwinners could be taxed more equitably, overall, Sri Lanka’s tax rates remain low and are not unfair.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
