Sri Lanka's new president faces manpower exodus

Unabated migration of skilled labour a key challenge to moves to boost ailing economy

- Rohini Mohan

Sri Lankans voted for an end to economic hardship in the country's presidential election on Sept 21, and new leader Anura Kumara Dissanayake is now gearing up for an unenviable balancing act.

The leftist leader must shore up the ailing country's fortunes while also heeding the mandate given to him by voters who have railed against high inflation, unemployment and stagnant incomes.

Sri Lanka suffered its worst economic crisis in 2022, when the debt-ridden nation ran out of money to service its international loan obligations. The country experienced dire shortages of food, fuel and medicine.

While things have improved since then - thanks to lines of credit extended by friendly nations and an International Monetary Fund (IMF) bailout - the task before Mr Dissanayake is complex.

Around 22.2 million Sri Lankans are still reeling under soaring prices, even as they are saddled with high tax rates that were necessitated by the country's creditors as a precondition for securing the much-needed bailout.

In addition, the new president will have to think up ways to attract hesitant foreign investors amid a pressing need for production growth.

What is more, although stores are well stocked with the imported food and products Sri Lanka relies on, real incomes have fallen by about 60 per cent, making nutritious meals unaffordable for most.

Mr Dissanayake, a first-time president without political pedigree from a once-radical Marxist party, is seen as a president for change in Sri Lanka.

A major way the new president has proposed to expand domestic production is by cleaning up the system, believing that an efficient and non-corrupt system will attract investment.