Sri Lankan Cabinet approves several measures to facilitate economic recovery

Sri Lanka's cash-strapped government has approved several measures, including imposing a 2.5 per cent social contribution tax on companies based on their turnover and declaring Fridays as holidays for most public sector employees, to facilitate the economic recovery and mitigate energy and food crisis.

Sri Lanka is currently facing its worst economic crisis since independence from Britain in 1948.

The economic crisis has prompted an acute shortage of essential items like food, medicine, cooking gas and other fuel, toilet paper, and even matches, with Sri Lankans being forced to wait in lines lasting hours outside stores to buy fuel and cooking gas. Sri Lanka's Cabinet at a meeting held on Monday approved a bill to impose a 2.5 per cent tax on companies with an annual turnover of Rs 120 million.

The new tax named the social contribution levy will be applicable to businesses in imports, manufacturing, service providers, wholesalers and retailers, according to an official statement. In another measure aimed at mitigating the ongoing energy crisis, the Cabinet has approved to declare Fridays as holidays for the public sector employees.