President Ranil Wickremesinghe of Sri Lanka, while launching his re-election campaign on Thursday, stated that the country had no choice but to accept an International Monetary Fund (IMF) bailout, which involved stringent austerity measures. Two years ago, Sri Lanka faced an unprecedented economic crisis that resulted in prolonged shortages of food and fuel, sparking street protests and forcing Wickremesinghe’s predecessor to temporarily flee the country.
Wickremesinghe, 75, emphasized that the $2.9 billion IMF rescue deal he negotiated last year mandated essential reforms to prevent a recurrence of these challenges. “The IMF agreements and those with our bilateral lenders are not negotiable,” he asserted during a campaign event unveiling his manifesto for the September 21 elections. “Some candidates believe they can renegotiate, but that’s just a waste of time.”
His primary opponents, opposition leader Sajith Premadasa, 57, and Marxist leader Anura Kumara Dissanayaka, 55, have both promised to initiate new discussions with the IMF to modify the agreement. Premadasa has vowed to reduce income taxes, which Wickremesinghe had doubled, while Dissanayaka’s party opposes planned privatizations of state enterprises.
Wickremesinghe also mentioned that he had reached an agreement with the IMF to reduce the tax burden on middle and low-income groups starting next year, although he did not provide specifics. Meanwhile, Sri Lanka continues negotiations with international bondholders after defaulting on its $46 billion foreign debt in 2022, during a year when the economy contracted by 7.3 percent.
Wickremesinghe faces opposition from the largest party in parliament, which supported his rise to power but where his predecessor’s family still holds significant influence. Namal Rajapaksa, 38, a lawmaker and member of the Rajapaksa family, is among 38 candidates running against Wickremesinghe in the upcoming election.
Additionally, Wickremesinghe has faced criticism for his refusal to fund a local government election last year, citing a lack of funds. The Supreme Court ruled last week that he had violated the fundamental rights of Sri Lankan voters and ordered the election to be held as soon as possible.
