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

He was referring to the Rajapaksa family, which remained in power in Sri Lankan politics until large demonstrations in 2022 over the financial collapse ousted then-president Gotabaya Rajapaksa and prime minister Mahinda Rajapaksa.

Despite the contentious history of his Janatha Vimukthi Peramuna ( JVP ) or People’s Liberation Front, voters sided with Dissanayake. It orchestrated failed rebellion in the 1980s that resulted in tens of thousands of fatalities.

He has since apologised for the group’s violence, but problems remain on what part the JVP might enjoy.

” He has given every sign that he will act politically. But given the political problems that Sri Lanka has faced in recent years, some may be sceptical”, said Kugelman.

AUSTERITY MEASURES VS IMF Problems

Sri Lanka is still suffering from the most severe financial crisis in decades and from the hardships brought on by the International Monetary Fund’s ( IMF) strict bailout.

Millions of people are now struggling to make ends meet thanks to the US$ 2.9 billion deal, which included spending cuts and tax increases.

Dissanayake has stated that he will deal with the bank for a better offer and go against some conditions that the IMF loan has set in order to fulfill his strategy promises of lower taxes and utility bills.