Sri Lanka kicked off a new austerity drive in which there is no possibility of government inducement recruitment. Recently taxes have been introduced in the island nations with higher electricity prices in order to upkeep the IMF bailout, reports news agency AFP. This can be done by attaining debt sustainability, defaulted in April.
The IMF had asked the country to deduce its path on providing 1.5 million government jobs, increase tax and sell off some state-owned properties or enterprises. The pubic administration ministry mentioned that in December, a record high of 20,000 civil servants retired which is eight folds than the last year’s record. In the same line of events, Sri Lankan president Ranil Wickremesinghe reduced the retirement age from 65 to 60.
It has been reported by AFP that there have a pattern of doubled personal income with corporate taxes to improve state revenue, on the other hand electricity prices ramped up to 65 percent.