New Sri Lanka president needs to balance campaign promises with debt obligations, say analysts

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New Sri Lanka president needs to balance campaign promises with debt obligations, say analysts

He was referring to the Rajapaksa family, which held a vice-like grip over Sri Lankan politics until mass protests in 2022 over the economic meltdown ousted then-president Gotabaya Rajapaksa and prime minister Mahinda Rajapaksa.

Voters rallied behind Dissanayake despite the controversial past of his Janatha Vimukthi Peramuna (JVP), or People’s Liberation Front party. In the 1980s, it led failed uprisings that left tens of thousands dead.

He has since apologised for the party’s violence, but concerns remain on what role the JVP might play.

“He has given every indication that he will rule democratically. But given the democratic challenges that Sri Lanka has faced in recent years, some may be sceptical,” said Kugelman.

AUSTERITY MEASURES VS IMF CONDITIONS

Sri Lanka is still reeling from its worst financial crisis in decades and hardships imposed by a stringent bailout from the International Monetary Fund (IMF).

The US$2.9 billion package came with spending cuts and tax hikes that have left millions struggling to make ends meet.

Dissanayake has said he will go against some conditions set by the IMF loan in order to fulfil his campaign promises of lower taxes and utility bills, and negotiate with the fund for a better deal.

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