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1 1 (November 4, 2024)

handle is hein.crs/goverff0001 and id is 1 raw text is: a nforming the legrs at ve debate since 1914 Sri Lanka: Background and Issues for Congress The Democratic Socialist Republic of Sri Lanka is a constitutional democracy situated off the southeastern tip of India's Deccan Peninsula in the heart of the Indian Ocean. Located along key shipping lanes, Sri Lanka and its Port of Colombo-already a significant global shipping hub-have grown in strategic importance as conflicts in the Middle East have disrupted shipping in the Red Sea. The Biden Administration has described Sri Lanka as in the middle of the geopolitical competition for regional influence. A democracy since its independence from the United Kingdom in 1948, Sri Lanka (known as Ceylon until 1972) was governed by two major political parties and their offshoots until September 2024. During and after the 26- year-long (1983-2009) civil war with the Tamil separatist Liberation Tigers of Tamil Eelam (LTTE), the government gradually expanded executive power, militarized the country, and limited civil freedoms. In early 2022, Sri Lanka experienced its worst economic crisis since independence, sparking a public uprising that ultimately drove President Gotabaya Rajapaksa from power. In September 2024, Sri Lankans elected Anura Kumara Dissanayake as president, the first president not associated with the country's dominant political parties. Starting in the late 2000s, U.S. policy focused on broadening Sri Lanka's democratic institutions, promoting good governance and human rights, and facilitating post- war reconciliation. Since the 2022 economic and political crises, U.S. priorities have included supporting economic reforms and more inclusive growth. U.S. policymakers, including many in Congress, also have raised concerns about the Sri Lankan government's growing ties to the People's Republic of China (PRC, or China) over the past two decades. Under former Presidents Mahinda Rajapaksa (2005-2015) and his brother Gotabaya Rajapaksa (2019- 2022), Sri Lanka's government relied on China to support its fight against the LTTE, as well as numerous post-war development projects, causing some observers to express concern about the potential for China to exert economic and military influence in a key part of the region. Sr Lanka's 2022 Twin Cr ses In early 2022, inflation reached 60%, the currency depreciated by over 80% against the U.S. dollar, foreign reserves dropped almost to zero, and the government defaulted on its debt. Gross domestic product contracted by roughly 7.9%, poverty doubled (to 25% of the population), and half a million jobs were lost. In March 2022, thousands of Sri Lankans began protesting the government's handling of the economy, which had resulted in fuel shortfalls, medicine and food shortages, and rolling blackouts. On April 1, 2022, Gotabaya Rajapaksa declared a state of emergency and gave the military sweeping powers to arrest and detain demonstrators. On April 12, the government announced it was defaulting on its Updated November 4, 2024 foreign debt of $51 billion. Its imposition of a curfew and announcement of a military shoot to kill order failed to quell protests, and in July both Gotabaya and Mahinda Rajapaksa (then serving as Prime Minister) resigned; Gotabaya temporarily fled the country. Parliament elected Ranil Wickremesinghe, a former prime minister, as president, in accordance with Sri Lanka's constitution. Fiaure L Sri Lanka at a Glance Source: World Bank; CIA World Factbook. The 2024 Pres dent aE ect on On September 23, 2024, Sri Lankans elected Anura Kumara Dissanayake as president. Dissanayake campaigned on anti- corruption and relief for ordinary Sri Lankans who have borne the brunt of the country's economic woes. Many observers interpreted his victory as a rejection of the corrupt, elite-dominated political status quo and the national leaders associated with Sri Lanka's social and economic problems. The election was conducted peacefully, and an international election monitoring group called the polls credible and transparent. Dissanayake since 2014 has led the Janatha Vimukthi Peramuna (JVP, or People's Liberation Front), founded in 1965 as a Marxist party for workers, farmers, and students, and the National People's Power alliance, a coalition of socialist parties that includes the JVP (NPP/JVP) and that rose to prominence during the 2022 uprising. If realized, his vision for Sri Lanka could mark a dramatic change of direction to prioritize economic and social justice and more left-leaning policies across a range of issues of interest to

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