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Colombo police on January 30 fired tear gas and water cannons on protesters opposing the steep tax increase and economic crisis in Sri Lanka.An estimated 10,000 protesters joined the demonstration, called by the main opposition United People’s Power party, also protesting against the high cost of living after the government declared bankruptcy in April 2022.Sri Lanka’s opposition leader Sajith Premadasa joined the protesters and blasted the government for imposing the “most inhumane pressure on the people” and “pushing 22 million people into starving.”The island nation is facing a dire economic crisis while it prepares for presidential elections later this year.Also on Tuesday, Sri Lanka’s central bank kept interest rates steady, in line with market expectations, forgoing a rate cut as a new tax threatened upward pressure on expenses and fueled concerns about inflation.At the start of 2024, the island nation raised its value-added tax (VAT) to 18% from 15% to meet revenue targets under the four-year $2.9 billion IMF program. That could spark a renewed rise in Sri Lanka’s key inflation rate, which had eased to 4% at the end of 2023 from a high of 70% in September 2022.
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Sri Lanka police use water cannons, tear gas on protesters opposing tax hike News18
