Sri Lanka to hold presidential election on september 21 amidst economic recovery efforts
Sri Lanka will cast its votes on September 21 to elect a new president, according to a government announcement made on Friday. This election is poised to play a pivotal role in shaping the future of the country’s economic reforms as it continues to navigate its most severe financial crisis in decades.
Nominations for the election must be submitted by August 15, the notice specified.
Incumbent President Ranil Wickremesinghe, who assumed office in July 2022 following the resignation of his predecessor Gotabaya Rajapaksa amid widespread protests, is anticipated to seek re-election. Wickremesinghe, 75, was appointed by Parliament to complete Rajapaksa’s five-year term, which had started in November 2019.
With nearly 17 million of Sri Lanka’s 22 million citizens eligible to vote, the election’s outcome will be crucial. Bhavani Fonseka, a senior researcher at the Colombo-based Centre for Policy Alternatives, emphasized the importance of a free and fair election. “This is a critical time for Sri Lanka,” she stated. “An election being called is extremely important for democracy but now the election commission must be allowed to do what they are mandated to do.”
Under Wickremesinghe’s leadership, and supported by a $2.9 billion International Monetary Fund (IMF) bailout, Sri Lanka has begun to recover from its economic downturn. Inflation, which soared to 70% in September 2022, has been reduced to 1.7% as of June, the rupee has strengthened, and foreign exchange reserves are rebuilding. The economy is projected to grow by 3% in 2024, rebounding from a 2.3% contraction last year and a 7.3% decline during the height of the crisis.
Additionally, Sri Lanka has secured a $10 billion debt restructuring agreement with bilateral creditors, including Japan, China, and India, allowing the country to defer repayments for four years and save $5 billion. However, the country still needs to finalize a preliminary agreement with bondholders regarding $12.5 billion of debt before a third IMF review later this year.
Despite these measures, high taxes, ongoing inflation, and a stagnant job market have driven a quarter of the population into poverty and spurred significant emigration. Opposition leaders, such as Sajith Premadasa and Anura Kumara Dissanayake, who leads the Marxist-leaning Janatha Vimukthi Peramuna (JVP), are expected to challenge the status quo. Both have expressed intentions to revisit the IMF programme to alleviate living costs and ease the debt burden.
Analysts warn that reversing the ongoing reforms could lead to a renewed crisis, emphasizing the need for the new government to continue and complete the reform process to stabilize and grow the economy.
