Sri Lanka's pro-China leader faces economic and political hurdles

With Dissanayake in power, India may need to rethink its diplomatic approach to the island nation

- KS TOMAR

The election of Anura Kumara Dissanayake, Sri Lanka's new pro-China and Marxist leaning president, with an anti-India mindset, is likely to add another layer of complexity to India's already strained relations with its neighbours. India faces serious challenges to smoothen relations with Bangladesh, Myanmar, and the Maldives, while maintaining cautious ties with Nepal. With Dissanayake in power, India may need to rethink its diplomatic approach to the island nation, especially given the president's politics and public statements during the election.

Despite these diplomatic concerns, India has already cemented its role as a crucial ally to Sri Lanka during its economic collapse. India's assistance, exceeding $4 billion, surpassed the International Monetary Fund's (IMF) $3 billion bailout package. This timely support from India helped the Sri Lankan people during their worst crisis, while China's lack of intervention resulted in a loss of goodwill among Sri Lankans, contrasting with India's decisive aid.

Dissanayake now takes office amid numerous challenges, the most immediate being Sri Lanka's ongoing economic crisis. With inflation surging, unemployment at record levels, and a debt burden exceeding $50 billion, his government must urgently stabilise the economy. A key focus will be successful negotiations with the IMF to restructure loans, stabilise foreign reserves, and attract investment. Containing inflation and ensuring access to basic necessities like food and fuel will be critical.