Thu Sep 19 05:45:20 UTC 2024: ## Sri Lankans Vote in Referendum on Austerity Measures Amid Economic Crisis
**COLOMBO, SRI LANKA** – Sri Lankans will head to the polls on Saturday to elect their next president, in what is widely seen as a referendum on the unpopular austerity measures imposed by the International Monetary Fund (IMF) following the nation’s unprecedented economic crisis.
Incumbent President Ranil Wickremesinghe, 75, is seeking re-election, claiming credit for stabilizing the economy and ending months of food, fuel, and medicine shortages. He also points to restoring calm after civil unrest in 2022 saw thousands storm the presidential compound, forcing his predecessor to flee the country.
“Think of the time when all hope was lost… we didn’t have food, gas, medicine, or any hopes,” Wickremesinghe said during his campaign. “Now you have a choice. Decide if you want to go back to the period of terror, or progress.”
However, Wickremesinghe’s tax hikes and austerity measures, implemented as part of a $2.9 billion IMF bailout, have left many struggling to make ends meet. Experts warn that the country’s economy remains fragile, with payments on its $46 billion foreign debt yet to resume following a 2022 government default.
Wickremesinghe has pledged to continue his austerity program if re-elected, warning that deviating from the IMF’s plan will lead to further difficulties.
The election is largely seen as a referendum on the government’s handling of the economic crisis and the subsequent recovery, according to the International Crisis Group. Many citizens are suffering hardship while the government implements cost-cutting measures perceived as unfair.
Wickremesinghe faces strong competition from two challengers: Anura Kumara Dissanayaka, leader of a once-marginal Marxist party, and Sajith Premadasa, a former ally and deputy of Wickremesinghe.
Dissanayaka, who has seen a surge in support due to his pledge to reform the country’s corrupt political culture, is likely to benefit from public anger over graft scandals and economic mismanagement.
Premadasa, who has campaigned on a promise to secure concessions from the IMF, has criticized the current burden-sharing structure of the IMF-supported tax code revision, which he says is forcing professionals to seek employment abroad.
Official data shows Sri Lanka’s poverty rate doubled to 25 percent between 2021 and 2022, adding 2.5 million people to those living on less than $3.65 a day.
Despite the hardships, the IMF reports that reforms are beginning to yield results, with inflation down from a peak of 70 percent to below five percent and growth slowly returning.
“A lot of progress has been made, but the country is not out of the woods yet,” said Julie Kozack, IMF spokesperson, last week. “It is important to safeguard those hard-won gains.”
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