Sri Lankan Prime Minister Resigns Following Presidential Election

The resignation of Gunawardena comes just one day after Dissanayake’s election, marking a significant political shift in Sri Lanka. Gunawardena had been in office since July 2022, taking over after former President Gotabaya Rajapaksa resigned amid massive protests against the government’s handling of the economy. Dissanayake’s election is notable as he becomes the first leftist president of Sri Lanka, promising to restore public trust in politics and address the deep-rooted issues stemming from the economic collapse. His party, which has historically been marginalized, gained traction due to the dire circumstances faced by citizens, leading to a landslide victory against incumbent Ranil Wickremesinghe, who had been criticized for implementing austerity measures during his tenure.

Political Context

Dissanayake’s rise to power is set against a backdrop of significant economic turmoil in Sri Lanka, characterized by food, fuel, and medicine shortages. His predecessor, Wickremesinghe, attempted to stabilize the economy through an International Monetary Fund (IMF) bailout, which included stringent tax increases and austerity measures. While these measures improved some economic indicators, they left many citizens struggling.

Future Implications

With Gunawardena’s resignation, Dissanayake is positioned to appoint his own cabinet, although his party holds only three seats in the 225-member parliament. He has indicated his intention to continue with the IMF rescue package but seeks to renegotiate its terms to potentially include tax cuts. This approach reflects a commitment to addressing the immediate needs of the population while navigating the complexities of the existing economic framework.