New leader’s promises will be tricky to keep in crisis-hit Sri Lanka
Posted on January 1st, 2025
Courtesy The Island
Anura Kumara Dissanayake wants the new year to be a turning point for the country [BBC]
Stunning election wins by a new left-leaning president and his party have changed Sri Lanka’s political landscape – but the cash-strapped island’s new rulers are quickly realising that campaign promises are easier to make than to keep.
Anura Kumara Dissanayake’s remarkable victory in the presidential election in September was swiftly followed by a landslide for his National People’s Power (NPP) alliance in parliamentary elections.
As a new year starts, he and his supporters want this to be a turning point for the country, which is trying to recover from devastating economic crisis and years of misrule.
However, they have limited room for manoeuvre to make good on pledges to voters, whose expectations from the new government are high.
Since the financial meltdown of 2022, economic recovery has been fragile and Sri Lanka is far from out of the woods.
The NPP won 159 seats in the 225-member assembly in November – an unprecedented two-thirds majority – giving Dissanayake a sweeping mandate to push through major economic and constitutional reforms.
However, even as the results were coming in, the new president had to gear up for a meeting with a visiting delegation from the International Monetary Fund (IMF), with which the outgoing government had negotiated a $2.9bn (£2.31bn) bailout package. The IMF deal became controversial as it led to severe austerity measures, tax rises and cuts in energy subsidies – hitting common people hard.
During the campaign Dissanayake and his alliance promised that they would re-negotiate parts of the IMF agreement.
But in his address to the new parliament, he performed a U-turn. The economy is in such a state that it cannot take the slightest shock… There’s no room to make mistakes,” Dissanayake said.
This is not the time to discuss if the terms [of the IMF loan] are good or bad, if the agreement is favourable to us or not… The process had taken about two years, and we cannot start all over again.”
Sri Lankans want the new government to bring down the cost of essentials [BBC]Dissanayake must also contend with India and China, which are jostling for influence in Sri Lanka, where both have invested heavily in recent years.Both India and China will try to bring Colombo under their sphere of influence. I think the new government’s foreign policy will be very pragmatic without aligning with anyone,” says Prof Uyangoda.In a careful diplomatic manoeuvre, Dissanayake chose Delhi as his first official overseas destination in mid-December. During the visit, India promised to supply liquefied natural gas for Sri Lankan power plants and work on connecting the power grids of the two countries in the long run.China’s increasing foothold in Sri Lanka, especially calls by Chinese research” vessels to the island’s ports – so close to India’s southern tip – has triggered concern in Delhi.I have given an assurance to the prime minister of India that we will not allow our land to be used in any way in a manner that is detrimental to the interest of India,” Dissanayake said after talks with Narendra Modi. Delhi will no doubt be pleased with the assurance, but Dissanayake will find out what Beijing expects when he visits China in mid-January.[BBC]