Goodbye, Old Guard

Listen to Today's Edition:

Marxist lawmaker Anura Kumara Dissanayake won Sri Lanka’s presidential election Sunday, in a closely watched vote that was marked by popular anger at the country’s political elite whom they hold responsible for the country’s worst economic crisis on record, the Associated Press reported.

Dissanayake won with more than 5.7 million votes, defeating another opposition candidate Sajith Premadasa’s 4.5 million votes, according to the election commission.

Meanwhile, President Ranil Wickremesinghe came in third.

The election comes as the island nation is recovering from its worst-ever economic crisis exacerbated by excessive borrowing, the COVID-19 pandemic, and government policies that drained foreign reserves.

In 2022, the country defaulted on $83 billion of debt, but has since restructured over $17 billion.

The crisis resulted in severe shortages of essential goods, such as medicine, food and fuel. Riots erupted across the country two years ago, with protesters storming government buildings, including the presidential palace, forcing then-President Gotabaya Rajapaksa to flee the country.

Wickremesinghe was later elected by a parliamentary vote in July 2022 to carry out the remainder of his predecessor’s five-year term.

Analysts said Saturday’s vote was seen as a referendum on Wickremesinghe’s stewardship of the recovery: He became deeply unpopular over the harsh austerity measures implemented under an International Monetary Fund (IMF) bailout program.

They added that Dissanayake’s rise in popularity also reflected widespread dissatisfaction with the political elite, who have been blamed for leading the country into an economic crisis. His anti-corruption, pro-working-class platform has resonated especially well with younger voters and the protest movements that previously ousted Rajapaksa.

The anti-establishment politician pledged to renegotiate the IMF deal to reduce the burden on citizens. However, financial analysts have expressed concerns about the uncertainty this might cause, and that it could delay the disbursement of IMF funds, including an upcoming tranche of $350 million, according to Bloomberg.

Others questioned how Dissanayake will balance his pledge for austerity relief with the fiscal discipline required by the IMF. The new leader will also have to balance Sri Lanka’s foreign policy, especially the country’s relationships with China and India – both of whom are major investors in the country.

While some believe he might lean more towards Beijing because of his Marxist roots, his previous criticism of Chinese investment deals indicates a desire to avoid future debt traps.