Features
Sri Lankans throw out old guard in election upset:
What nation’s new Marxist-leaning leader means for economy, IMF loans
by Vidhura Tennekoon
Assistant Professor of Economics, Indiana University
Formerly of the Central Bank of Sri Lanka.
Sri Lankans voted for a new direction in leadership on Sept. 22, 2024, electing a leftist anti-poverty campaigner as President of the South Asian nation.
The ascent of Anura Kumara Dissanayake marks a break with the past and from the establishment parties and politicians blamed for taking the country to the brink of economic collapse in 2022.
Dissanayake characterized the victory as a “fresh start” for Sri Lanka – but he will nonetheless need to address the economic baggage left by his predecessors and the impact of an International Monetary Fund loan that came with painful austerity demands. The conversation turned to Vidhura S. Tennekoon, an expert on Sri Lanka’s economy at Indiana University, to explain the task facing the new President – and how Dissanayake intends to tackle it.
What do we know about Sri Lanka’s new President?
Anura Kumara Dissanayake leads both the National People’s Power alliance, or NPP, and the Janatha Vimukthi Peramuna, or JVP. Rooted in Marxist ideology, the JVP was founded in the 1960s with the aim of seizing power through a socialist revolution. But after two failed armed uprisings in 1971 and 1987-89 – which resulted in the loss of tens of thousands of lives – the party shifted toward democratic politics and has remained so for over three decades.
Until this election, the JVP remained a minor third party in Sri Lanka’s political landscape, while power alternated between the alliances led by the two traditional political parties – the United National Party and the Sri Lanka Freedom Party – or their descendant parties.
In 2019, under Dissanayake’s leadership, the NPP was formed as a socialist alliance with several other organizations. While the JVP continues to adhere to Marxist principles, the NPP adopted a center-left, social democratic platform – aiming to attract broader public support.
Despite these efforts, Dissanayake garnered only 3% of the vote in the 2019 presidential election.
But the political landscape shifted dramatically during the economic crisis of 2022. Many Sri Lankans, frustrated with the two traditional parties that had governed the country for over seven decades, turned to the NPP, seeing it as a credible alternative.
The party’s anti-corruption stance, in particular, resonated strongly because many people blamed political corruption for the economic collapse.
It helped deliver 42% of the vote to Dissanayake.
While a significant achievement, it also marks a historic first for Sri Lanka — Dissanayake is the first President to be elected without majority support; the remaining 58% of votes were split between candidates from the two traditional parties.
His immediate challenge will be to secure a parliamentary majority in the upcoming elections, a crucial step for his administration to govern effectively.
What kind of economy is Dissanayake inheriting?
Two and a half years ago, Sri Lanka experienced the worst economic crisis in its history. With foreign reserves nearly depleted, the country struggled to pay its bills, leading to severe shortages of essential goods. People waited in long lines for cooking gas and fuel, while regular blackouts became part of daily life. The Sri Lankan rupee plummeted to a record low, driving inflation to 70%. The economy was contracting, and the country defaulted on its international sovereign bonds for the first time.
This sparked a massive protest movement that ultimately forced President Gotabaya Rajapaksa to resign. In July 2022, Parliament appointed Ranil Wickremesinghe to complete the remainder of Rajapaksa’s term.
In the two years that followed, Sri Lanka’s economy made an unexpectedly rapid recovery under Wickremesinghe’s leadership. After securing an agreement with the International Monetary Fund, the currency stabilized, the Central Bank rebuilt foreign reserves, and inflation fell to single digits. By the first half of 2024, the economy had grown by 5%.
The government successfully restructured its domestic debt, followed by a restructuring of its bilateral debt – that is, government-to-government loans, mostly from China but also from India and Western counties, including the United States. Just days before the election, an agreement was reached with international bondholders to restructure the remaining sovereign debt.
Despite these achievements, Wickremesinghe was overtaken in the presidential race by both Dissanayake and Opposition leader Sajith Premadasa. Wickremesinghe’s unpopularity stemmed largely from the harsh austerity measures implemented under the IMF-backed stabilization programme.
Dissanayake now inherits an economy that, while more stable, remains vulnerable. He will have limited room to maneuver away from the carefully planned economic path laid out by his predecessor, even as voters expect him to fulfill popular demands.
How does Dissanayake plan to improve Sri Lanka’s economy?
As a leader from a Marxist party, Dissanayake will likely pursue policies to reflect collective decisions made by the politburos and central committees of the NPP and JVP, rather than his individual views. He advocates for an economic system where activities are coordinated through a central government plan, emphasizing the importance of “economic democracy.”
His party believes prosperity should be measured not just by economic growth but by the overall quality of life. They argue that people need more than just basic necessities — they require secure housing, food, healthcare, education, access to technology and leisure.
Dissanayake’s long-term vision is to transform Sri Lanka into a production-based economy, focusing on sectors like manufacturing, agriculture and information technology rather than service industries. One of the key policies is to promote local production of all viable food products to reduce reliance on imports. To support these activities, the NPP plans to establish a development bank. Additionally, the NPP proposes increasing government spending on education and healthcare, in line with Sri Lanka’s tradition of providing free, universal access to both.
Where does this leave the IMF loans?
Historically, Dissanayake’s party has been critical of the IMF and its policy recommendations. Given the severity of Sri Lanka’s economic crisis, Dissanayake has acknowledged the need to stay within the IMF programme for now. But he has vowed to renegotiate with the IMF to make the programme more “people-friendly.” Dissanayake’s proposals include raising the personal income tax exemption threshold to double its current level and removing taxes on essential goods. Dissanayake’s party also plans adding jobs to the public sector, despite the ongoing effort to reduce the government workforce to manage the deficit.
Dissanayake’s populist policies, aimed at attracting mass support during the campaign, will inevitably strain government revenues while increasing expenses. However, the IMF programme requires Sri Lanka to maintain a primary budget surplus of at least 2.3% of gross domestic product to ensure debt sustainability. Dissanayake has promised not to jeopardize the country’s economic stability by deviating from this target. His strategy is to improve the efficiency of tax collection, which he believes will generate enough revenue to fund his policies.
Additionally, his party has criticized the deal struck by Wickremesinghe’s government with international lenders, calling it unfavourable to the country. Dissanayake has promised to seek better terms. However, since these agreements are already in place, it remains uncertain whether the new government will attempt to renegotiate them.
(Courtesy of The Conversation)
About the author: Vidhura S Tennekoon is an Assistant Professor of Economics at the Indiana University Purdue University Indianapolis. Vidhura earned his BSc degree in Engineering from the University of Peradeniya and an MBA from the University of Colombo in Sri Lanka where he is originally from. He earned an MSc degree in Economics and Econometrics with Distinction from the University of Nottingham, UK. During 2008 to 2012, Vidhura attended Washington State University and received a PhD in economics. Before joining IUPUI in 2014, Vidhura worked at the Departments of Economics of the University of Oklahoma and Eastern Washington University where he taught several undergraduate and graduate economics courses. He also has professional experience as a central banker.
Features
West Asian conflict undergoing manifold complications
Israeli Prime Minister Benjamin Netanyahu’s message to Israel’s enemies was blunt and stark.‘We’re going to win; we have no choice.’ He said so while the majority of attendees at a recent UN General Assembly session walked out of the conference hall when the Israeli Prime Minister took the podium; many of them booing in derision.
Those commentators who have been studying Israel’s handling of her enemy states over the decades are unlikely to dismiss the entirety of Netanyahu’s address as rhetoric. The general pattern has been for the Israeli state to stand up firmly against its enemies in the battle field. On most occasions, these adversaries have been beaten back.
It is also little realized in particularly the Southern hemisphere that Israel, for the most part, could defend herself without much US assistance. The history of the conflict bears this out.
However, from the viewpoint of working towards a just and equitable peace in the Middle East the Israeli hard line stance has proved and will prove incalculably detrimental. The sworn enemies of Israel are not going to be in any way deterred by Netanyahu’s stark warnings. On the other hand, they would be only further provoked into taking on Israel by conventional or unconventional military means and seek its destruction.
The recent aborted mid-air hijacking of a Flydubai flight, consisting mainly of Israeli passengers, by an Omani extremist drives home the point. Israel’s enemies are bound to redouble their efforts to annihilate Israel rather than be deterred by the latter’s warnings about standing firm against them. This too history has proved.
It would be in the fitness of things at this juncture to pay a tribute to the professionalism, courage and humanity of the relevant airline pilot, Captain Machchhar, whose timely action proved decisive in botching the hijack attempt. His intervention averted what could very well have been another 9/11 type tragedy. History is not going to forget his daring and resourcefulness.
Meanwhile, the ground realities in West Asia are undergoing further complications that portend increasing regional instability. For example at the time of writing Turkiye, Pakistan and Saudi Arabia have agreed under the recently established ‘Mecca Alliance for Defence’ to deploy ‘deterrence measures’ collectively in the event of any member of the alliance coming under military strikes from a non-member state.
The agreement is modeled on the NATO collective defence pact and should help in defusing any threat perceptions experienced by the alliance members in the short term. However, the group would need to be cognizant of the major and potentially divisive role Iran could play in the interstate politics of the Middle East region going forward.
Iran’s reported support, for example, for Yemen’s Houthi rebels, who are engaged in attacking Saudi national assets, could at some point in time compel the alliance, under the terms of the pact, to initiate deterrent military measures against Iran.
The implications for regional peace from such a turn of events hardly require elaboration. A full blown regional war emerges as a distinct possibility if Iran sees itself as being excessively antagonized by the alliance. A further complication is that antagonistic sectarian identities of an Islamic kind could come to play hugely divisive roles in it. Shiite Islamic states would be inclined to back Iran while those countries seen as Sunni Islamic in orientation are bound to support Saudi Arabia.
Accordingly, West Asia is a region rife with manifold aggravated insecurities. If the latter are not defused dexterously they could escalate into a conflict of extra regional dimensions. The latter development would render the world a collective loser.
Unfortunately, no constructive help could be expected from the US at this juncture by way of working towards regional and international peace even of short durance. Its war against Iran has only aggravated the world’s current insecurities.
For example, the world has been compelled to face the possibility of compounded economic woes as a consequence of the Hormuz crisis remaining unresolved. The world is currently experiencing what could be seen as a ‘winter of economic discontent’ of unprecedented proportions.
Unfortunately, the international community is to all intents and purposes helpless in the face of this multifaceted crisis. Substantial intervention is expected of the UN but since it has failed to reform itself over the years it is compelled to stand idly by while the world’s insecurities heighten and multiply.
Yet, it is the seemingly paralyzed UN system that has some potential to contain the current tide of international disorder to even a small measure. Given the persisting divergent and conflicting interests among the world’s principal power blocs, the G7 and BRICS for instance, it is mainly the UN and its principal agencies that could carry some credibility as peace brokers and mediators.
However, as an initial step towards bringing the principal protagonists to the negotiating table the UN would need to convince the principal powers of the UN Security Council of the need for a substantive broad-basing of the membership of the Council so as to reflect more accurately the current global political and economic realities. Such reforms would render the Council more representative and help in strengthening its credibility and effectiveness.
The above reforms call for years of dynamism, hard work and resourcefulness on the part of the international community, read the UN. Yet the aims are not impossible to achieve if strong leadership is brought to bear by the UN.
Meanwhile, the UN agencies and allied organizations need to pay stepped-up attention to the West Asian theatre and its wasting conflicts and wars. Here too there is immense hard work to be put in.
There is, for instance, identity politics and its issues that need to be managed urgently. While internal political matters of countries could not be addressed directly by UN agencies, awareness-raising programs and projects could be energetically carried out by them to blunt the appeal of identity-based slogans, relating to, for instance, religion and race.
Besides, values at the heart of democratic politics need to be freshly and enthusiastically propagated. Vast reserves of energy and resources are needed, to be sure, to consistently champion and implement these crucial projects but they need to be pursued single-mindedly if even a dent is to be made in the current runaway global disorder.
The aborted hijacking of the Flydubai flight pointed to the dehumanizing impact of identity politics on the human consciousness. It was also an indication that those sections endowed with humanity cannot stand idly by while identity politics continues to destroy civilizational values. The time to act is ‘now’.
Features
Future of Sri Lanka’s state university system: Should it be shut down and reopened?
by Professor Ranjith Bandara
Emeritus Professor of Economics, University of Colombo
My life has been closely connected with Sri Lanka’s state university system for more than four decades. Its doors opened to me first as a student and later as an academic. The system gave me knowledge, opportunities and a life. Therefore, when I speak about its future, I do so not as an outsider, but as someone who owes much to it and genuinely wishes to see it become better.
Over the years, our university system has expanded significantly. New institutions, faculties, degree programmes and opportunities for students have been created. For 2024, the government expected to admit 43,204 students to national universities. By the time the relevant report was prepared, 42,282 students had been admitted through the general admission process, which had not yet been completed. This is an achievement that should not be dismissed.
However, expanding the system does not necessarily mean that its quality has improved. The real question is not simply how many students we have allowed through the doors, but what kind of education they receive after entering. (Source: Ministry of Education Annual Performance Report 2024.)
We often proudly declare that “our university is number one.” Yet a university does not become number one through publicity. Its true standing depends on the quality of its teaching, the strength of its research and the contribution it makes to society. A vice-chancellor writing about the institution’s, or his or her own, achievements on Facebook does not improve the quality of a university. What matters is good teaching, an education that encourages students to think, credible research and new knowledge that benefits society. A reputation must be earned through meaningful work, not through self-promotion.
The fundamental purpose of a university is clear: to create knowledge, to teach it and to train students to examine and understand it critically. To fulfil this purpose, academics need freedom, responsibility and time. Students must be free to ask questions, disagree and develop their own views based on evidence. Without such an environment, a university may award degrees, but it cannot fulfil the true purpose of university education.
The most serious danger I see is the growing tendency for political activity to take precedence over the academic mission of universities. Over the past five decades, this problem has gradually become more serious. In some universities today, it has become difficult even to hold or express an opinion that differs from the dominant political view.
Members of a university community have every right to hold political views and express them peacefully. A university should not be a place inhabited by silent people. However, when political loyalties, power blocs and struggles for positions become more important than research, teaching and learning, the university moves away from its true purpose. When the political camp to which an academic belongs matters more than the value of that academic’s ideas, the respect that should belong to knowledge is transferred to power.
These criticisms are not ideas I have borrowed from books. They are based on experiences from my own professional life. One such experience was the manner in which I had to leave the university nearly twenty years ago. In my view, the improper exercise of political power within the administration of the University of Colombo at that time, and the strong desire to retain that power, had a serious effect on my professional life. Although this was a personal experience, I mention it with regret because it reveals a deeper institutional problem.
The lesson I learned from that experience is not merely about one person or one incident. When there are no strong institutional safeguards to ensure that power is exercised fairly and individuals are protected, even an academic may be forced to leave an institution he deeply loves.
To those who criticise my later decision to enter national politics, my answer is this: when the university’s institutional system failed to provide me with fairness and professional protection in the face of the injustice I experienced, I had to choose another path through which I could use my knowledge and experience in the service of the country.
This does not mean that all vice-chancellors, academics or students behave in the same way. I personally know many people who, despite difficult circumstances, have taught with dedication, undertaken meaningful research and transformed the lives of their students. Scholars such as Professor W. D. Lakshman, Professor Arjuna Aluwihare and Professor Lakshman Jayatilake may be recognised among the distinguished vice-chancellors in the history of Sri Lanka’s university system. Their service deserves our respect and appreciation.
Nevertheless, the presence of a few good and committed individuals cannot, by itself, strengthen a weak institutional system. We must also create an institutional environment in which such people can work independently, fairly and effectively.
First, university leaders must be selected through a process based on clearly defined qualifications, transparent evaluation and accountability. Once a vice-chancellor has been appointed, his or her performance should be assessed according to the support provided for research, the quality of teaching, student welfare, the institution’s financial discipline and the fairness of its decisions. Personal loyalties and publicity skills cannot replace these measures of performance.
Second, academics must be given the time and space required to carry out their core responsibilities. It is meaningless to demand “world-class universities” without providing adequate time, facilities and reasonable funding for research. Teaching, too, should not be treated merely as delivering lectures. Students must be trained to reason, write, investigate and apply their knowledge to real-world problems. The quality of a degree programme should be measured not by its title, but by the capabilities of the graduates it produces.
Third, universities must establish an honest connection with the needs of the country. The problems confronting our economy, schools, healthcare system, agriculture, environment and wider society are all legitimate subjects for research. Seeking answers to these problems does not diminish the dignity of a university; it increases its value to society.
At the same time, research must not be controlled by short-term political demands. Knowledge can serve the country only when researchers are free to communicate what they discover. Sri Lanka’s World Bank-supported AHEAD higher education programme similarly connected the expansion of enrolment in priority disciplines with improving the quality of degree programmes and promoting research and innovation. These goals were linked because meaningful expansion cannot be separated from educational quality. (Source: World Bank overview of the AHEAD programme.
Fourth, the responsibilities of students must be clearly emphasised. The duty to protect the academic environment of a university cannot be placed solely on administrators and academics. Every student has a fundamental responsibility to give priority to his or her education, respect the right of other students to learn and allow the free exchange of ideas.
Student activities, social debate and political engagement all have an important place in university life. However, none of them should be allowed to disrupt education or prevent other students from learning.
When students abandon their primary purpose of learning and create an environment that obstructs education, the university system cannot fulfil one of its most important functions: producing knowledgeable and responsible graduates. A university may continue to award degree certificates, but if lectures, research, open discussion and intellectual inquiry do not receive sufficient attention, it risks producing graduates who lack depth of knowledge, critical thinking and professional competence.
The result may be the emergence of a group of “half-educated” graduates, individuals who possess certificates but have not received a complete intellectual education. Therefore, just as we discuss student rights, we must also have an honest and open discussion about student responsibilities within the university system.
My position on the current professional struggle of university academics is also clear. If they are demanding fair conditions of employment, those demands should be discussed seriously. If their struggle is also intended to free universities from political interference and restore research, teaching and learning to the centre of university life, I stand with them.
The rights of academics and the educational rights of students should not be presented as opposing interests. Both can be protected and respected only within a well-functioning university.
When I say that “the state university system should be shut down and reopened,” I do not mean that we should close the door on the future of our students. I mean that we must close the door on systems in which power matters more than knowledge.
Students have the right to hold political views and participate actively in debates on national issues. A university needs a student community that thinks about the country’s problems and speaks out against injustice. However, student politics should not shut down the university, deprive other students of their education or become a means of displaying organisational power. The right to fight for one’s beliefs comes with the responsibility to respect another person’s right to an education.
Simply attempting to establish another 50 universities will not solve these problems. Sri Lanka needs a higher education system that brings together the contributions of state, state-affiliated and private institutions while applying clear standards and responsibilities to all of them.
Strict discipline within such a system should not mean suppressing freedom of thought. It should mean ensuring that everyone fulfils their responsibilities in relation to teaching, research, examinations, institutional governance and student welfare. A degree certificate will then have value not merely because of the name of the institution that issued it, but because the knowledge and capabilities of the person who earned it can be trusted.
We should learn from advanced higher education systems, but we should not simply copy them. We must develop institutional autonomy, reliable quality-assurance mechanisms and publicly accountable governance in ways that suit our own needs. What we owe future generations is not merely a country with a larger number of universities, but a country in which people can trust the education those universities provide.
What we must close down, therefore, is not the universities themselves, but the outdated system that closes the door on knowledge, freedom and responsibility. What we must reopen is a genuine university system devoted to learning, inquiry, research and the creation of new knowledge in the service of the country.
Features
The Sri Lankan who made Scottish history
From beauty pageants and medical science to challenging British immigration policy and making political history in Scotland, yes, that’s Sri Lankan Deena Tissera, born into privilege, in Chilaw, but exposed to poverty and the realities of war.
Now, after 15 years in British politics, she tells Ivan Alvis why she is no longer interested in fitting anyone else’s image of a leader.
She was educated at The British school in Colombo and her father was a doctor-entrepreneur-philanthropist, and mother a former beauty queen and movie star.
She studied Medical Science, moved into Global Health and began a PhD in Public Health, competed in Miss Sri Lanka for Miss World, and, in 2022, made history as the first woman of colour elected to Aberdeen City Council; the first politician of Sri Lankan descent elected in Scotland.
The moment that set it all in motion came during the worst period of her life. Her father had died. She was 24 and missed her university examinations to attend his funeral.
“My father’s greatest wish for me was that I completed my education. However, I was being told that my education would be delayed because I had missed examinations to attend his funeral.”
She refused to accept it. She challenged the university, protested, went before its board and represented herself — and won.
“I went from fighting for myself to realising there were thousands of students who sometimes needed somebody to fight with them.”
She was elected Students’ Union Vice President. Soon her campaigning grew larger. As an international student she had experienced Britain’s immigration system, first-hand, and helped build a UK-wide movement, campaigning for international student rights, and contributing to campaigns that helped achieve changes to immigration rules.
“That taught me one of the most important lessons of my life. Politics isn’t about having a title. Politics is understanding where power sits, organising the people who don’t have it and knowing how to make the people who do have it, listen.”

Deena: Beauty pageant
contestant
The instinct to challenge inequality began earlier. Though born to privilege, her father took her into communities affected by the war through his philanthropic work.
“I grew up with opportunities, but I was surrounded by poverty. That contradiction affected me enormously. My father taught me that privilege isn’t something you should feel guilty about. But you should understand the responsibility that comes with it.”
If her father gave her a sense of service, her mother gave her confidence. Inspired by her, Deena took to modelling … and the Miss Sri Lanka pageant.
“People sometimes expect serious women to edit the glamorous parts out of their history. I can, and have been in a beauty pageant, and still understand economic policy.”
Her academic background continues to shape her politics: “Medical science teaches you evidence. Global health teaches you systems. Public health teaches you that someone’s health can be determined by poverty, housing, education and employment long before they reach a hospital.”
While at the University of Aberdeen she joined Labour Students, later becoming Vice-Chair of her Constituency Labour Party. What followed was more than a decade of door-knocking, organising, strategising, winning and losing.
The overnight success took 15 years. In 2022 she won Hilton, Woodside and Stockethill in Aberdeen.
The historic label came with a complicated reality. She remembers entering rooms with qualifications, campaign experience and leadership credentials — and still sensing she was not the person others imagined as leader.
“There have been tables where I have looked around and known I may be the most accomplished person sitting there, but I wasn’t necessarily the person people saw as the leader. And that’s because I didn’t fit the look.”
Her answer was to work harder — another qualification, another campaign. Then she realised the flaw in that strategy.
“If you wait for everybody else to decide you’re good enough, you can spend your entire life auditioning for a position you’re already qualified to occupy. I owned my identity and started leading with the confidence of my competence.”
At 39, successful and unmarried, she speaks with unusual candour. “Being unmarried is a marital status. It isn’t a performance review.”
Her message to young Sri Lankan and migrant women is direct: “Do not shrink your ambition to make yourself easier for somebody else to digest.”
Her blog series ‘Taboo Tuesdays’ — with titles like “Politics Is a Blood Sport – And We Pretend It Isn’t” — examines ambition, envy, ego and power from inside the room.
Since her election, she has led on anti-poverty and inequality, served as Labour’s Energy Spokesperson for Aberdeen covering net zero, environment and transport, and served as Chief Whip of the Labour group.
She was adviser to former Prime Minister Gordon Brown on his Our Scottish Future commission, took part in the Jo Cox Women in Leadership programme, and served as Scottish executive representative for the northeast, Highlands and Islands at her party’s top table.
Recognition has followed — 35 Under 35 Scotland’s rising political stars, Exceptional Achiever of the Year, Politician of the Year nomination, and Outstanding Woman in Governance and Public Policy by Women in Management UK.
As Energy Spokesperson for Aberdeen, one of Europe’s key energy cities, she sits at the centre of Britain’s energy debate. She supports transition but warns: “A just transition cannot mean asking one community to carry the economic cost of everybody else’s environmental ambition.”
Ask her if she wants more power and her answer is simple: “Yes. I am ambitious. But power without purpose is just status.”
Perhaps her most personal answer is about representation: “The first Sri Lankan elected in Scotland means something to me because it means the next Sri Lankan isn’t the first.
“I didn’t have to become less Sri Lankan to become Scottish. I didn’t have to become less feminine to become politically serious. And I didn’t have to look like somebody else’s idea of leadership before I was allowed to lead.”
In conclusion, Deena Tissera had this to say: “There was a time when I wanted to prove I deserved a seat at the table. Now I walk in knowing I do.”
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