Factbox: Why Did Sri Lanka’s President Call a Snap General Election?

By Uditha Jayasinghe and Sudipto Ganguly

COLOMBO – Sri Lanka is set to conduct a parliamentary election on November 14, as announced by the government on Tuesday. This decision comes less than two months after Anura Kumara Dissanayake was elected as the new president of the Indian Ocean island nation.

Here are five significant reasons behind Dissanayake’s call for a snap general election:

CAPITALIZING ON MOMENTUM

Dissanayake secured 5.6 million votes, amounting to 42.3%, in the recent presidential election, a remarkable increase from the 3% he garnered in the 2019 presidential race. His closest contender, opposition leader Sajith Premadasa, received 32.8%. Dissanayake aims to harness this wave of support to strengthen his position in the 225-seat parliament.

NEED FOR PARLIAMENTARY SUPPORT

Running as a candidate for the National People’s Power alliance, which includes his Janatha Vimukhti Peremuna (JVP) party, Dissanayake is facing a challenge, as this coalition holds only three seats in the current parliament elected in August 2020. By dissolving the legislature, he seeks to bolster his influence. While he possesses executive powers as president, delivering on his commitments to reduce taxes and redirect public funds for relief and investment will be challenging without parliamentary backing.

IMF PROGRAM CHALLENGES

Sri Lanka is currently benefiting from a four-year, $2.9 billion IMF bailout program aimed at stabilizing the economy by increasing reserves, curbing currency depreciation, and controlling surging inflation. However, the austerity measures associated with this program have caused dissatisfaction among many citizens, who are looking for improvements from their new leader. During his campaign, Dissanayake expressed intentions to reduce taxes and renegotiate the terms of the IMF deal, yet implementing a budget will require parliamentary support.

DEBT RESTRUCTURING

Sri Lanka is in the process of restructuring approximately $25 billion in foreign debt. Achieving backing from parliament could empower Dissanayake in discussions with bondholders, who might find the new president’s clarity and direction reassuring.

CABINET FORMATION ISSUES

The limited parliamentary representation has led to difficulties in forming a complete cabinet of ministers following Dissanayake’s inauguration on Monday. He appointed Harini Amarasuriya as prime minister, encompassing five portfolios, while Vijitha Herath was designated to oversee six ministries, including foreign affairs. Dissanayake has retained control over key ministries such as finance, defense, and energy.