• GMOA threatens with TU action, but will take part in talks

 Several trade unions (TUs) representing professionals are to meet the International Monetary Fund (IMF) delegation today (25) to discuss several demands including the tax relief, it is learnt.

Meanwhile the Government Medical Officers’ Association (GMOA) said that many trade unions are prepared to take union actions if the Government fails to reach a proper consensus with the IMF on behalf of the people in Sri Lanka. However the GMOA also stated that they believe that the Government will make a suitable decision which does not cause inconvenience to the general public.

The GMOA and other trade unions have threatened similar trade union action in the past and carried through with their threats. The main trade union of the health sector, once took to the streets against the proposed ‘Suwa Sariya’ ambulance service, citing links to India. However, today, the Ambulance service is well received in Sri Lanka, and delivers yeomen service to the public.

Speaking to The Daily Morning yesterday (24), GMOA Spokesperson Dr. Chamil Wijesinghe said that President Ranil Wickremasinghe and his Government agreed to provide them with proper solutions at the end the first assessment of Sri Lanka’s progress in the implementation of the new economic reforms proposed by the IMF which is happening now. He said professionals' TUs have already handed over a letter to the IMF through the Central Bank Sri Lanka (CBSL) after which they have been invited for a discussion today.

He added that it is the responsibility of the Government to discuss these matters with the IMF and enlighten them to take a suitable decision in this regard as the President promised to professionals months ago. He said otherwise many TUs will be taking trade union actions against this repressive tax policy.

However, when contacted by The Daily Morning yesterday, State Minister of Finance Ranjith Siyambalapitiya said that it is up to the IMF to take a decision regarding the matter and the Government has made every possible effort to bring out the issues and find a solution for them. He therefore said that it is better if the GMOA can personally convince the IMF to make such a decision.

With the first assessment of Sri Lanka’s progress in the implementation of the new economic reforms proposed by the IMF taking place at the moment, GMOA and several TU’s handed over a series of proposals requesting them to look into the issues faced by the professionals in the country and to take necessary steps to reduce taxes imposed with the Government’s new tax policy following from the IMF bailout.

Earlier this year (2023), the Government decided that selected professionals, including doctors, engineers, accountants, and lawyers, who provide services as “independent service providers” should pay a 5% Withholding Tax, according to the new tax system now in operation. This decision was criticised by many parties claiming that it is unreasonable to impose such a tax in the midst of a critical economic crisis. Professionals’ trade unions, including the GMOA and the Federation of University Teachers’ Associations (FUTA) led several strikes protesting the new tax policy during the past few months.