Sri Lanka’s government has decided to raise the minimum wage by 40 percent to help workers cope with high living costs amidst their gradual recovery from the deepest financial crisis in years. The economic turmoil, beginning in early 2022 due to a foreign exchange shortage, led to high inflation, a depreciated currency, and a default on international debt.
The wage hike aims to alleviate poverty, increasing the daily national wage considerably. The government’s recent tax increases and energy price hikes have escalated the cost of living, significantly affecting the impoverished population. This has sparked continuous protests in the capital by university students and trade unions, pressing for more affordable living conditions.
