The Treasury Secretary Mahinda Siriwardana has warned that the Value Added Tax (VAT) may have to be increased if the striking public servants' demand for a salary increase is met.
Mr Siriwardena told a meeting presided over by President Ranil Wickremesinghe today that the current 18% VAT will need to be raised to 20-21%, if the salaries were to be increased.
Accordingly it has been emphasized that the government is not prepared to fulfill this demand as it would burden the public.
The discussion was chaired by President Wickremesinghe today (08) at the President's Office to address the demands presented by the trade unions and it was emphasized that a salary increase this year is not possible, the President’s Media Division said.
However, the 2025 budget will consider revising public service salaries based on the expert committee's recommendations on salary disparities, the PMD said.
More than 300 state unions, with over one million members working in a public service sector are reported be supporting a two day strike launched today by the Collective of State and Provincial State Service Trade Union demanding a range of issues.
This trade union action has been launched, as the government limited the monthly allowance of 25,000 rupees only to the officers in the executive services of the public sectors.
They have questioned whether only the executive officers feeling the burden of the economic crisis in the country.
The collective of state union firmly said that they will reverse this action only if their demand is met Their main demand to increase the monthly allowance up to 25,000 rupees regardless of service grade.
Over 20,000 post workers joined with the two days strike across Sri Lanka 4,500 post office's & sub office's.
Health Trade Union, University Non-academic Employees Union supported to the strike action and nearly 12000 Grama Niladari officers in 14022 gram Grama Niladari division across the country aligned with them.
The Teachers & Principal union announced that they will join the strike by reporting sick on tomorrow (July 9) while All Ceylon Nurses Union announced that they will not join the strike launch from today.
Further more Public Management Union, Labor Officer Union, Development Officers Union Agricultural Consultancy and Agricultural Services Union, Technology Services Unikn, Driving Services Union, Divisional Secretariat Offices & District Secretariat Offices Union Department of Registration of Persons Union, Registrar General Department Union in public sector and many other trade unions are supporting this strike.
In the meantime, the prominent & experienced trade union leader in Sri Lanka Mr Leslie Devendra emphasized
"When the country began experiencing a major crisis at the start of the 21st century, we realized that the behavior of trade unions was not appropriate. They only think about themselves and not about the country, added "We must think about our country first. Union members can fight for their rights, but they should also do their jobs,".
Meanwhile more protests were held in Colombo today demanding the salary increases.
By Ishu Bandara
pix by M.A.Pushpakumara
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