Significant electoral victories for Anura Kumara Dissanayake and his left-leaning National People’s Power (NPP) party have reshaped Sri Lanka’s political scene. However, the new administration faces daunting challenges in fulfilling bold campaign promises amidst a recovery from a profound economic crisis.
Dissanayake’s electoral triumph in September was followed by an overwhelming majority in the parliamentary elections, with the NPP securing 159 out of 225 seats. This two-thirds majority gives him a robust mandate to enact sweeping economic and constitutional reforms.
As the new year unfolds, Dissanayake and his supporters envision a turning point for Sri Lanka, which is still reeling from a severe economic meltdown in 2022. Despite the high expectations from voters, the government is constrained in its ability to deliver on promises.
Since the financial collapse, Sri Lanka has struggled with fragile economic recovery, far from alleviating its challenges. The NPP faces criticism as it navigates the repercussions of a contentious deal with the International Monetary Fund (IMF), which was secured by the previous regime and involves a $2.9 billion bailout package accompanied by austerity measures that have significantly impacted the populace.
During his initial address to parliament, Dissanayake acknowledged the pressing economic situation, stating, “The economy is in such a state that it cannot take the slightest shock… There’s no room to make mistakes.” He indicated that discussions regarding the IMF agreement’s terms might not be feasible at this juncture, suggesting a potential deviation from pre-election promises to renegotiate the deal.
The NPP’s electoral success is viewed as a culmination of public discontent stemming from the economic crisis that led to widespread protests and ultimately toppled former President Gotabaya Rajapaksa in 2022. The nation experienced acute shortages of food and fuel, declaring bankruptcy after defaulting on approximately $46 billion in external debt.
Recent voter sentiment underscores significant frustration toward traditional political parties, which have been blamed for the economic downfall. Analysts suggest that addressing the pressing needs of the populace, particularly in terms of reducing heightened taxation and mitigating the cost-of-living crisis, will be priorities for the new administration.
For many citizens, such as Niluka Dilrukshi, the effects of political change remain largely unfelt. Her family’s struggle serves as a stark reminder of the ongoing economic hardships, despite political transformations. “We are still struggling to make ends meet and nothing has changed,” she states, expressing a desire for immediate government intervention to lower essential costs.
As Sri Lanka relies heavily on imports, the country faces ongoing challenges in maintaining currency reserves, particularly as debt repayment pressures loom in the coming years. Citizens expect visible improvements in living standards from the new government to justify their overwhelming support.
“People have given him a huge mandate. The IMF should respect that by allowing him to implement social welfare programs,” commented a political expert, emphasizing the critical balance Dissanayake must strike between economic constraints and societal needs.
In addition to domestic challenges, Dissanayake’s administration must navigate complex international relations, particularly with India and China, both of whom seek to enhance their influence in Sri Lanka. Dissanayake’s recent diplomatic visit to India resulted in promising commitments regarding energy supply and infrastructure cooperation.
However, growing Chinese interests in the region pose potential diplomatic challenges. Dissanayake assured India’s leadership that Sri Lanka would remain firm in not allowing its territory to be used against India’s interests, though the future of Sino-Sri Lankan relations will become clearer during his upcoming visit to China.
