Sri Lanka picks ex-leader’s ally as new president, risking fury

Bloomberg

Ranil Wickremesinghe was voted in as Sri Lanka’s president backed by a majority of lawmakers from ousted leader Gotabaya Rajapaksa’s party, a development that could reignite street protests in the bankrupt nation and scuttle bailout talks with the International Monetary Fund.
Wickremesinghe, 73, beat Dullas Alahapperuma, an opposition-backed candidate who had the support from a faction within the ruling party, and left-leaning lawmaker Anura Kumara Dissanayake from the opposition Janatha Vimukthi Peramuna. He secured 134, or more than 50%, of the votes cast in parliament on Wednesday. The leader described the victory as an “honor and a privilege,” as he addressed parliament soon after the results were announced.
While Rajapaksa’s Sri Lanka Podujana Peramuna party has not formally split — fissures have appeared as the group struggles to deal with the anti-government anger across the country. The main focus of the demonstrator’s ire so far was the former president, who fled to Singapore and resigned, after months of protests calling for his ouster culminated in thousands of demonstrators on July 9 storming his official residence.
The South Asian island nation is facing the worst economic and political crisis since its independence in 1948, with food, fuel and medicines in short supply and inflation seen touching 70%. The new president is deeply unpopular among the protesters, who set fire to his personal residence earlier this month and occupied his office. They also attempted to storm parliament last week, prompting Wickremesinghe, who was hastily named acting president then, to announce emergency rule — giving the army and police powers to detain and arrest people. He has blamed “fascist” elements for escalating tensions.
On Wednesday, a small group gathered outside the presidential secretariat after the results of the vote chanting, “Ranil, Ranil you have failed.”
Wickremesinghe is looking to speak to all the political parties starting Thursday and the discussions will include forming an all-party government. As president, he also has the executive power to appoint a new premier, a job he currently holds himself.
The rupee was little changed in intraday trading at 362 per dollar. Dollar bonds due in 2030 were indicated 0.46 cents higher at 23.39 cents on the dollar.
Opposition candidate Dissanayake said the result did not reflect the reality on the ground. “It shows a perversion of the people’s wishes,” the lawmaker said in parliament. “There is a big gap between the assembly here and the people outside.” On Monday, Wickremesinghe had laid out what he had done since being appointed prime minister by Gotabaya Rajapaksa in May when the largely peaceful protests turned bloody, forcing the resignation of older brother and strongman Mahinda Rajapaksa.
Wickremesinghe said he had led the country close to a conclusion in negotiations with the IMF for a bailout program and made progress in “discussions for assistance” with foreign countries.
The veteran politician was first elected to the legislature in the late 1970s and had an unbroken streak in parliament until 2020, when his party was trounced after the Easter Sunday bombings.