With focus on the economy, Sri Lankans set to vote for president in closely contested election, Reports Reuters

By Sudipto Ganguly and Uditha Jayasinghe

COLOMBO – Sri Lankans will head to the polls on Saturday to elect a new president in what is shaping up to be a closely contested race. The election outcome could significantly impact the nation’s delicate economic recovery, as incumbent Ranil Wickremesinghe faces challenges from left-leaning rivals.

The economy, which faced a severe collapse in 2022 due to a critical shortage of foreign currency, remains a central concern for voters. Many citizens have endured a staggering inflation rate that peaked around 70%, alongside a devalued currency and power tariff increases of 65%.

Despite a recent drop in inflation to 0.5% and projections for GDP growth—the first increase in three years—millions of Sri Lankans remain entrenched in poverty and debt, with many placing their hopes for a better future on the next leader.

“The presidential election is expected to be close, tense, and possibly pivotal in determining the country’s political path, especially with many citizens still struggling to meet their basic needs,” commented Alan Keenan, a senior consultant at the International Crisis Group.

The election features a tight contest among Wickremesinghe, opposition leader Sajith Premadasa, and Marxist politician Anura Kumara Dissanayake. According to a recent survey, Dissanayake is currently the frontrunner, followed by Premadasa and Wickremesinghe in a position behind them.

Both Premadasa and Dissanayake have indicated they might adjust taxes and public spending related to the International Monetary Fund’s bailout program, while Dissanayake has also put forth a new homegrown strategy for debt restructuring.

With approximately 17 million eligible voters from a total population of 22 million, this will be the first election since widespread protests against economic hardships led to the resignation of former president Gotabaya Rajapaksa last year. Wickremesinghe, a former prime minister selected by parliament to complete Rajapaksa’s term, has overseen an uncertain economic recovery backed by a $2.9 billion IMF bailout and a $25 billion debt restructuring plan.

Sri Lanka’s first-past-the-post electoral system allows voters to select three preferred candidates, with the winning candidate required to secure over 50% of the votes. If no candidate achieves this threshold, a runoff will take place between the two leading candidates—a likely scenario given the close race.

Voters are anticipated to prioritize economic issues over traditional political loyalties, according to Dhananath Fernando, an economist at the Advocata Institute.

Election results are expected to be announced on Sunday, with a new president to be sworn in shortly after.

The incoming leader will face the crucial tasks of stabilizing public finances, repaying foreign creditors, attracting investment, and implementing the four-year IMF program.

Critics have pointed out a lack of sensitivity from the government regarding debt restructuring and the need to ensure that the burdens of adjustment do not disproportionately fall on the most vulnerable citizens, as noted by Paikiasothy Saravanamuttu, head of the Centre for Policy Alternatives.