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Sri Lanka’s Treasury Secretary Proposes VAT Increase to Address Public Servants’ Strike

Sri Lanka’s Treasury Secretary, Mahinda Siriwardana, has stated that the current Value Added Tax (VAT) rate must be raised from 18% to 20-21% to meet the demands of public servants who are striking for a salary increase.

This observation was made during a meeting at the President’s Office today (08), held under the patronage of President Ranil Wickremesinghe, according to the President’s Media Division (PMD).

The government, however, is not prepared to fulfill this demand, as it would impose an additional burden on the public, the PMD further reported.

During the discussion chaired by President Wickremesinghe at the President’s Office, it was emphasized that a salary increase this year is not possible. However, the 2025 Budget will consider revising public service salaries based on the expert committee’s recommendations on salary disparities, the PMD stated.

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