Sri Lanka is experiencing social unrest as more than 40 trade unions launched a nationwide strike on Wednesday to protest against high income taxes, which the government imposed as a precondition for a crucial International Monetary Fund (IMF) bailout. The strike caused hospitals, ports, and banks to shut down, affecting transportation and essential services. Dockers at the main sea port in Colombo stayed away, while air traffic controllers carried out a "go-slow" for two hours, affecting at least 14 international flights. The strike was despite a ban imposed by President Ranil Wickremesinghe last month, and warnings that violators could lose their jobs. Armed soldiers were deployed at railway stations as well as the port to restore minimum services. However, the strike's duration will depend on the government's response to the unions' demand to reverse the new taxes, which were among the measures taken to qualify for a US$2.9 billion rescue package from the IMF. The IMF's executive board is due to decide on Sri Lanka on March 20 and is widely expected to release the first instalment of a nine-tranche US$2.9 billion loan spread over four years. However, officials involved in the negotiations said the IMF has been closely monitoring the protests and social unrest since the tax reforms.
