COLOMBO: Sri Lankan President Anura Kumara Dissanayake’s leftist coalition won a thumping victory in a snap general election, gaining power to push through his plans to fight poverty in the island nation recovering from a financial meltdown.

Dissanayake’s Marxist-leaning National People’s Power (NPP) coalition won 137 seats of 196 for which direct elections were held, a two-thirds majority, Friday’s ballot counting showed. Local media projected its tally would cross 150 in the 225-member parliament after more seats are distributed under a proportional seat distribution system.

That would give Dissanayake sweeping powers to even abolish the contentious executive presidency as he has planned.

While the clear mandate strengthens political stability in the South Asian country, some uncertainty on policy direction remains due to Dissanayake’s promises to try and tweak the International Monetary Fund (IMF) rescue program that bailed the country out of its economic crisis, analysts said.

Dissanayake, a political outsider in a country dominated by family parties for decades, comfortably won the island’s presidential election in September.

But his coalition had just three seats in parliament before Thursday’s snap election, prompting him to dissolve it and seek a fresh mandate.

The NPP secured almost 62 percent or almost 7 million votes in Thursday’s election, up from the 42 percent Dissanayake won in September, indicating that he had drawn more widespread support including from minorities and built on his victory.

“We see this as a critical turning point for Sri Lanka. We expect a mandate to form a strong parliament, and we are confident the people will give us this mandate,” Dissanayake said after casting his vote on Thursday.

“There is a change in Sri Lanka’s political culture that started in September, which must continue.”

Voters directly elect 196 members to parliament from 22 constituencies under a proportional representation system. The remaining 29 seats will be distributed according to the island-wide proportional vote obtained by each party.

TENTATIVE ECONOMIC RECOVERY

Celebrations were largely muted, with the exception of a few NPP loyalists who lit fireworks on the outskirts of the capital, Colombo.

The Samagi Jana Balawegaya party of opposition leader Sajith Premadasa, the main challenger to Dissanayake’s coalition, won 35 seats and the New Democratic Front, backed by previous President Ranil Wickremesinghe, won just three seats.

Sri Lanka typically backs the president’s party in general elections, especially if voting is held soon after a presidential vote.

The president wields executive power but Dissanayake still required a parliamentary majority to appoint a fully-fledged cabinet and deliver on key promises to cut taxes, support local businesses, and fight poverty.

A nation of 22 million, Sri Lanka was crushed by a 2022 economic crisis triggered by a severe shortage of foreign currency that pushed it into a sovereign default and caused its economy to shrink by 7.3 percent in 2022 and 2.3 percent last year.

Boosted by a $2.9 billion bailout program from the International Monetary Fund (IMF), the economy has begun a tentative recovery, but the high cost of living is still a critical issue for many, especially the poor.

Dissanayake also aims to tweak targets set by the IMF to rein in income tax and free up funds to invest in welfare for the millions hit hardest by the crisis.

But investors worry his desire to revisit the terms of the IMF bailout could delay future disbursements, making it harder for Sri Lanka to hit a key primary surplus target of 2.3 percent of GDP in 2025 set by the IMF.

“The country has given a clear mandate politically. The key question would be if this is at the cost of economic policy,” said Raynal Wickremeratne, co-head of research at Softlogic Stockbrokers in Colombo.

“I think with this majority they may try to negotiate a bit more on the (IMF) targets as well,” he said. “A continuation of the current reform program on a broader extent would be positive for the country.”

LIMA: US President Joe Biden and Chinese counterpart Xi Jinping will attend the first day of an Asia-Pacific leaders’ summit Friday ahead of a face-to-face meeting under a cloud of diplomatic uncertainty cast by Donald Trump’s election victory.
Biden and Xi are due to hold talks Saturday, in what a US administration official said will probably be the last meeting between the sitting leaders of the world’s largest economies before Trump is sworn in in January.
With the Republican president-elect having signaled a confrontational approach to Beijing for his second term, the bilateral meeting will be a closely watched affair.
Xi and Biden arrived in Lima Thursday along with other world leaders for a two-day heads-of-state meeting of the Asia-Pacific Economic Cooperation (APEC) grouping.
APEC, created in 1989 with the goal of regional trade liberalization, brings together 21 economies that jointly represent about 60 percent of world GDP and over 40 percent of global commerce.
The summit program was to focus on trade and investment for what proponents dubbed inclusive growth.
But uncertainty over Trump’s next moves now clouds the agenda — as it does for the COP29 climate talks underway in Azerbaijan, and a G20 summit in Rio de Janeiro next week.
On Thursday, APEC ministers, including US Secretary of State Antony Blinken, held their own meeting behind closed doors in Lima to set the tone for the summit to follow.
Trump announced this week he will replace Blinken with Senator Marco Rubio, a China hawk.
The summit will also be attended by Japan, South Korea, Canada, Australia and Indonesia, among others.
President Vladimir Putin of APEC member Russia will not be present.
Trump’s “America First” agenda is based on protectionist trade policies, increased domestic fossil fuel extraction, and avoiding foreign conflicts.
It threatens alliances Biden has built on issues ranging from the wars in Ukraine and the Middle East to climate change and commerce.
The Republican president-elect has threatened tariffs of up to 60 percent on imports of Chinese goods to even out what he says is an imbalance in bilateral trade.
China is grappling with a prolonged housing crisis and sluggish consumption that can only be made worse by a new trade war with Washington.
But economists say punitive levies would also harm the American economy, and others further afield.
China is an ally of Western pariahs Russia and North Korea, and is building up its own military capacity while ramping up pressure on Taiwan, which it claims as part of its territory.
It is also expanding its reach into Latin America through infrastructure and other projects under its Belt and Road Initiative.
Xi on Thursday inaugurated South America’s first Chinese-funded port, in Chancay, north of Lima, even as a senior US official warned Latin American countries to be vigilant when it comes to Chinese investment.
Biden, meanwhile, will on Friday meet Japanese Prime Minister Shigeru Ishiba and South Korean President Yoon Suk Yeol — key US allies in Asia.
Traveling with Biden, National Security Adviser Jake Sullivan said the partner nations will announce the creation of a secretariat to ensure their alliance “will be an enduring feature of American policy.”
China isn’t the only country in Trump’s economic crosshairs.
The incoming US leader has threatened tariffs of 25 percent or more on goods coming from Mexico — another APEC member — unless it stops an “onslaught of criminals and drugs” crossing the border.
Peru has deployed more than 13,000 members of the armed forces to keep the peace in Lima as transport workers and shop owners launched three days of protests against crime and perceived government neglect.