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 per cent in 2022 and 2.3 per cent last year.
The president will have to present an interim budget in the next few weeks, as well as find ways to reduce taxes and increase welfare, which were his key election pledges, without derailing the IMF programme.
Dissanayake will also have to complete a US$12.5 billion debt restructuring with bondholders and put growth on a sustainable path.
A political outsider in a country dominated by family parties for decades, Dissanayake comfortably won the island’s presidential election in September.
But his Marxist-leaning National People’s Power (NPP) coalition had just three seats in parliament, prompting him to dissolve it and seek a fresh mandate in last Thursday’s snap election.
Prime Minister Amarasuriya, 54, polled the second highest number of preferential votes, and is an academic with a doctorate in social anthropology from the University of Edinburgh. She will also hold the education and higher education portfolios.
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