Sri Lanka's Finance Minister has stated that the country has no choice but to raise sales tax as it faces its worst economic crisis to date.

Ali Sabry made the comment during an interview with BBC, stating that the government made a mistake when it reduces the value added tax (VAT) to 8% in 2019. He added that the government has to increase taxes and find a way to bridge the revenue gap and expenditure in the country.

Sabry added that Sri Lanka needs USD 4 billion over the next eight months to pay for essential imports.

Sri Lanka is currently leading talks with IMF for emergency financial aid to help the country's economy recover. The island nation is also continuing talks with China and India for relief aid as well.

Schools and train stations closed in Sri Lanka on Thursday as teachers and train drivers joined the protest against the government in the wake of the fuel, food, and medicine shortage in the country.