New Government
Sri Lanka's new President Anura Kumara Dissanayake's government has begun its economic reform agenda following his historic election victory, navigating the delicate balance between IMF program requirements and public expectations for change.
Election Victory
Historic result:
September 2024
| Metric | Result |
|---|---|
| Winner | Anura Kumara Dissanayake |
| Party | NPP/JVP coalition |
| Vote share | ~42% |
| Nature | Historic leftist victory |
JVP Background
The party's history:
Evolution
| Period | Character |
|---|---|
| 1970s-80s | Revolutionary |
| 1990s-2000s | Parliamentary |
| 2020s | Mainstream acceptance |
| 2024 | Electoral victory |
Economic Situation
Inherited challenges:
Economic Context
| Factor | Status |
|---|---|
| IMF program | Ongoing |
| Debt restructuring | In progress |
| Growth | Recovering |
| Inflation | Declining |
| Poverty | Elevated |
IMF Relationship
Program management:
EFF Program
| Element | Status |
|---|---|
| Agreement | March 2023 |
| Reviews | Continuing |
| Conditions | Being met |
| New government | Committed |
Policy Approach
AKD's economic strategy:
Key Elements
| Area | Approach |
|---|---|
| IMF program | Continuing with modifications |
| Taxation | Reform promises |
| Welfare | Enhancement |
| Corruption | Strong focus |
| Efficiency | Government reform |
Political Mandate
Parliamentary power:
November 2024 Elections
| Result | Number |
|---|---|
| NPP seats | 2/3 majority |
| Opposition | Weakened |
| Mandate | Strong |
Anti-Corruption Focus
Key priority:
Measures
| Action | Status |
|---|---|
| Investigations | Launched |
| Asset recovery | Pursued |
| Judicial | Cases filed |
| Institutional | Reforms planned |
Public Expectations
Citizen demands:
Hopes
- Cost of living relief
- Corruption end
- Employment
- Services improvement
- Dignity restoration
International Relations
External engagement:
Key Relationships
| Partner | Status |
|---|---|
| India | Close, support |
| China | Debt discussions |
| Japan | Development partner |
| IMF/WB | Program continues |
Challenges Ahead
Governance obstacles:
Issues
| Challenge | Severity |
|---|---|
| Expectations management | High |
| Economic constraints | Significant |
| Institutional capacity | Limited |
| Political inexperience | Present |
2022 Crisis Legacy
Recovery from collapse:
Progress
| Indicator | Status |
|---|---|
| Currency | Stabilized |
| Reserves | Rebuilt |
| Supplies | Normal |
| Tourism | Recovering |
Looking Ahead
Government trajectory:
2025 Priorities
- Economic stabilization
- Social relief
- Institutional reform
- Corruption prosecution
- Development restart
Sri Lanka's new government faces the challenge of meeting public hopes while maintaining the fiscal discipline required by its international commitments.
