Image for representative purposes.
(Photo: PTI)
The Sri Lankan Cabinet on Monday, 13 June, approved various measures to mitigate the energy and food crises, amidst the ongoing economic crisis in the country.
These measure include the imposition of a 2.5 percent social contribution tax for companies with a turnover of over Rs 120 million, and declaring Fridays a holiday for most public sector employees.
The Sri Lankan population is experiencing long refuelling queues with the government struggling to finance imports of fuel required to retain a reserve adequate for a minimum of three months.
Moreover, to mitigate the energy crisis, the Cabinet approved a move to declare Friday as a holiday for people working in the most public sector positions. This would, however, not be applicable to those working in health, education, defence, and power and energy sectors.
The nearly bankrupt country, with an acute foreign currency crisis that resulted in foreign debt default, announced in April that it is suspending nearly $7 billion foreign debt repayment due for this year out of about $25 billion due through 2026.
Sri Lanka's total foreign debt stands at $51 billion.
(With inputs from PTI)
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