Cash-strapped Sri Lanka is set to vote for its next president on Saturday, marking its first election since the island nation experienced an unprecedented financial crisis. The election will serve as a referendum on President Ranil Wickremesinghe’s handling of the crisis and the austerity measures imposed under a $2.9 billion International Monetary Fund (IMF) bailout.
Wickremesinghe, 75, is seeking a fresh mandate after claiming credit for stabilizing the economy and restoring order following the civil unrest of 2022. His tenure has seen an end to severe shortages of food, fuel, and medicine, and a return to relative calm after the dramatic departure of his predecessor. “Think of the time when all hope was lost… we didn’t have food, gas, medicine, or any hopes,” Wickremesinghe said in the final days of his campaign. “Now you have a choice. Decide if you want to go back to the period of terror, or progress.”
However, his presidency has also been marked by tax hikes and other austerity measures, which have left many citizens struggling financially. Critics argue that these measures, a condition of the IMF bailout, have caused significant hardship. Despite these challenges, Wickremesinghe has vowed to continue his austerity program if re-elected, warning that any deviation from the IMF’s prescriptions could lead to further economic troubles.
Wickremesinghe faces significant opposition from two challengers. Anura Kumara Dissanayaka, leader of a once-marginal Marxist party, has gained traction by capitalizing on public discontent with corruption and poor economic management. Dissanayaka’s party, which had a violent past marked by failed uprisings in the 1970s and 1980s, now presents itself as a reformist alternative.
Sajith Premadasa, another opposition leader, is also a strong contender. Once a deputy of Wickremesinghe, Premadasa has distanced himself from his former ally and is campaigning on promises to secure better terms from the IMF. Premadasa’s manifesto includes revising what he describes as unfair tax codes that he argues are driving professionals to seek employment abroad.
Sri Lanka’s poverty rate has doubled to 25% between 2021 and 2022, adding 2.5 million people to the ranks of those living on less than $3.65 a day. Despite signs of economic improvement, including a decrease in inflation from a peak of 70% to below 5% and a gradual return of growth, the IMF warns that Sri Lanka is not yet out of the woods. “A lot of progress has been made, but the country is not out of the woods yet,” said IMF’s Julie Kozack. “It is important to safeguard those hard-won gains.”
The election will test whether Sri Lankans are willing to continue with Wickremesinghe’s austerity measures or seek a new direction with his opponents, who promise reform and a reconsideration of the IMF’s terms.
