Sri Lanka’s first election after the coup, what is the situation now, has the country recovered from bankruptcy?

If July and August are the season for coups, this is no different. In August this year, a change of power took place in India’s neighbor Bangladesh. The same thing happened in Sri Lanka in July 2022. The then nearly bankrupt countrymen overthrew the government during the Gotabaya Rajapaksa administration. Since then, the economy and politics have been unstable. After public anger, Sri Lanka will hold its first general election this month. In the meantime, find out how the ordinary people in Sri Lanka are doing.

First let us understand why the coup happened in the country.

This was clearly visible in 2022, despite the gradual deterioration of Sri Lanka’s economic situation. People began to worry about basic issues such as power outages, fuel, and food. Inflation increased rapidly. In April of the same year, protests against the government of then-President Gotabaya Rajapaksa began. The protests that began in Colombo spread like wildfire across the country.

Meanwhile, the economic situation worsened. As Colombo was running out of foreign exchange reserves for imports, there was a shortage of fuel for services such as buses, trains and ambulances. Overall, Sri Lanka could not even procure what it needed. This anger led to a coup. The public surrounded the presidential palace and looted it. Meanwhile, then-Prime Minister Ranil Wickremesinghe was appointed interim president. His government began asking for help from the international community. However, conditions remained challenging.

Why do you have to be in debt?

Over the past few years, the Rajapaksa government has taken out huge loans from many countries to invest in large infrastructure projects. The loans were at high interest rates, causing Sri Lanka to gradually sink into more debt. Finally, two years ago, then-Finance Minister Ali Sabri declared the country bankrupt. Since then, President Rajapaksa has also officially admitted that his government can no longer repay its foreign debts.

After the change of government, a bailout package of about $3 billion was obtained from the International Monetary Fund in 2023. In addition to this, many other international organizations and countries also publicly offered help. India was also included in them. He provided all possible help to Colombo in accordance with the policy of neighbors first. At the Indian Partner Conference held in Colombo in June this year, President Wickremesinghe said that he had received $3.5 billion in financial assistance from India. This brought economic stability to the country, but the matter is still pending.

The situation in rural areas remains grim

The suspension of services due to lack of fuel has started in the cities, but the situation in the countryside is still bad. For example, there is an economic crisis in the Jaffna and Mullaitivu regions in the north of Sri Lanka. Apart from agricultural-related facilities, even basic needs of life are difficult to meet. Let us tell you that the northern part of the country has long been a battleground between Tamils ​​and Sinhalese. It was here that the LTTE rose up and the Sri Lankan army used a lot of force in suppressing the LTTE insurgency, which directly affected the lives of residents and economic development in the region. Now, one of the factors that will put the broken system back on track will be who the public elects this time and what issues the government focuses on.

Let us tell you that Sri Lanka will hold its first presidential election after political turmoil on September 21, with about 17 million people voting.

It will be very interesting. The Prime Minister-turned-President Ranil Wickremesinghe is popular, but the weak economy remains a major problem for the people. However, the same thing could also work in favor of the current president. He took over the reins of the country at its most difficult time and tried to save it. Namal Rajapaksa of the Rajapaksa family, who is considered responsible for the country’s bankruptcy, has also been drawn into the controversy.

Sajith Premadasa is also in the race, he also held this position earlier. He is also one of the strongest contenders, he knows the weak nature of the people and keeps talking about economic liberalization in his rallies. There is one more thing that is new. As in Europe, disillusionment with the left can be seen in Colombo. Political parties are emphasizing the right wing in their own way.