Sri Lankan Presidential Election: Marxist Leader Anura Kumara Dissanayake Leads

In Sri Lanka, Anura Kumara Dissanayake, the leader of the Marxist Party, is reported to be the next President of the country, according to the Election Commission figures. Dissanayake won 53 percent of the million votes counted so far in the election, with Leader of the Opposition Sajith Premadasa coming in second with 22% and President Ranil Wickremesinghe in third.

A significant 75% of the Indian Ocean island’s 17 million people voted in Saturday’s election, as reported by polling bodies.

Dissanayake ran as a candidate for the National People Power (NPP) coalition, which included his Marxist party Janata Vimukti Peremuna (JVP). His campaign focused on traditionally arguing for strong state intervention, lower taxes, and more closed market economic policies, resonating with voters.

Economic Challenges Ahead

This election marks Sri Lanka’s first since the economy faced a severe foreign exchange shortage in 2022, leaving the country unable to pay for imports of essential goods, including fuel, medicine, and cooking gas.

In 2022, thousands of protesters marched in Colombo and occupied the president’s office and residence, forcing then-president Gotabaya Rajapaksa to flee and later resign.

Although the economy recorded a temporary recovery thanks to the International Monetary Fund’s (IMF) $2.9 billion bailout program, the high cost of living remains a critical issue for many voters.

Inflation has decreased to 0.5% from a crisis of 70% last month, and the economy is forecast to grow in 2024 for the first time in three years. However, millions of people are still struggling with poverty, and many hope for a better future in the near future.

Challenges for the New President

The winner of the election needs to ensure that Sri Lanka remains in the IMF program until 2027 to put the Sri Lankan economy on a sustainable growth path, secure markets, repay debt, attract investors, and help lift a quarter of its population out of poverty.

In his manifesto, Dissanayake promised tax cuts that would meet economic targets, leaving investors and market participants concerned about his economic policies. However, he took a more conciliatory approach in campaign speeches, saying that any changes would be made in consultation with the IMF and that he was committed to securing debt repayments.