Experts explore Sri Lanka’s political and economic challenges ahead of Presidential Election

Dr. Rajni Gamage, Research Fellow, Institute of South Asian Studies, National University of Singapore, Dr. Indrajit Coomaraswamy, Former Governor, Dr. Chulanee Attanayake, National University of Singapore, Dr. Paikiasothy Saravanamuttu, Executive Director, Centre for Policy Alternatives, and Associate Professor Iqbal Singh Sevea, Director, Institute of South Asian Studies, National University of Singapore participated at the webinar

The Pathfinder Foundation (PF) and the Institute of  South Asian Studies (ISAS) at the National University of Singapore  jointly hosted a comprehensive webinar focusing on the domestic politics  of South Asia, with a special emphasis on Sri Lanka. The webinar, held  at the River Point, Head Quarters of the PF brought together leading  experts to explore the socio-economic and political challenges faced by  Sri Lanka as the nation approaches the Presidential Election on 21st  September.

The webinar featured distinguished speakers, each  providing unique insights into the multifaceted political and economic  issues that will shape Sri Lanka’s future.

Dr. Rajni Gamage,  Research Fellow at ISAS, delved into the current political landscape in  Sri Lanka and the indicative policy agenda of leading presidential  candidates and political parties that would be employed to address the  development challenges the country faces. She emphasised the importance  of the election, the first since the severe economic crisis, noting that  it is being held under intense public scrutiny. Dr. Gamage highlighted  that several prominent political leaders were contesting in an  environment where the electorate was more vigilant than ever.

Dr.  Indrajit Coomaraswamy, former Governor of the Central Bank of Sri Lanka  and Distinguished Fellow (PF), speaking on current socio-economic  dynamics in Sri Lanka, concentrated on three crucial areas, namely,  recent macro-economic performance and policies, poverty dynamics in the  country and the need for addressing corruption vulnerabilities. He  highlighted that in terms of macroeconomic management, there has been an  impressive turnaround in the economy. These include economic growth  turning into positive after six quarters of consecutive negative  contraction, dramatic reduction in both inflation and interest rates,  healthy performance in government revenue collection and impressive  build-up of external foreign reserve, which was precariously low at US$  20 million at the time of the crisis has now reached US$ 5.6 billion. He  further underscored the importance of continued commitment to  implementing the IMF reform package under the Extended Fund Facility  (EFF), of which two reviews have been completed. Finally, he emphasised  that the slogan for the next new government should be “consensus and  consistency’’ in implementing the economic policy reform framework that  has been agreed to achieve economic growth targets and stability.  
Addressing  the socio-political undercurrents, Dr. Paikiasothy Saravanamuttu,  Executive Director of the Centre for Policy Alternatives, provided  insights into the rise of populism in Sri Lanka. He highlighted the  potential backlash political parties may face if they fail to deliver  their promises. Dr. Saravanamuttu emphasised the necessity of strong and  decisive leadership to navigate the complexities of the current  political environment, warning that the stakes are higher than ever in  the upcoming elections.

Dr. Chulanee Attanayake, a Non-Resident  Fellow at ISAS, offered a comprehensive analysis of regional geopolitics  and its potential impact on Sri Lanka’s elections. She examined the  influence of global superpowers, focusing on India, China, and the  United States on the next government. Dr. Attanayake highlighted the  strategic importance of Sri Lanka within the broader South Asian context  and discussed how regional dynamics could shape the country’s political  and economic future.

The webinar saw active participation from a  diverse audience, including academics, policy analysts, and regional  experts. The Q&A sessions were particularly engaging, with  participants posing several focused questions on the implications of Sri  Lanka’s political dynamics, its foreign policy, the role of political  parties in shaping the electoral landscape, and the potential outcome of  the Presidential Election.

The Presidential Election is poised  to be a pivotal moment for Sri Lanka, marking the first major political  event after the country’s economic crisis. As highlighted during the  webinar, the next government will face the dual challenges of firm  commitment to growth-enhancing economic reforms while ensuring a  delicate balance to manage geopolitical pressures.