Sri Lanka's presidential election a test for current leader, 2 years after its economy hit bottom

COLOMBO, Sri Lanka (AP) — Two years ago, food cart worker Fathima Shiyama had to wait in line, sometimes for days, to get cooking gas, fuel and other essentials. It was a test of patience for her and millions of other Sri Lankans as their country languished in economic and political chaos.

Since then, under President Ranil Wickremesinghe, the South Asian island nation's economy has begun a fragile recovery. As the country gears up for a crucial presidential vote, key economic indicators have improved and there are no shortages of food and fuel. Inflation is almost under control after peaking at 70%.

On Thursday, the government announced it has completed restructuring its debt. The finance ministry said it has reached agreements in principle on the restructuring of international sovereign bonds, the final step after previously restructuring loans from local and bilateral lenders.

Sri Lankans who usually vote along religious and ethnic lines will be keeping the state of the economy in mind when they vote Saturday on a new president. Many are still struggling, borrowing money or leaving the country to cope with rising living costs and limited opportunities.

Shiyama says she isn’t still earning enough to cover her monthly expenses and pay for her ailing daughter’s medical tests. In desperation, she has turned to borrowing from loan sharks at an exorbitant 20% interest rate.

“We are trying our best to survive despite many difficulties,” said the 48-year-old mother of five, as she was selling “string hopper” noodles and coconut “pittu,” popular traditional dinner items, from a cart on the outskirts of Colombo.

As Sri Lanka sank into economic collapse in 2022, a popular uprising led its then president, Gotabaya Rajapaksa, to flee the country.

This weekend's election pits his successor, Wickremesinghe, against opposition leader Sajith Premadasa and Anura Dissanayake, leader of a Marxist-led coalition that has been gaining popularity. Poll results are due Sunday.

All the candidates have promised to lead Sri Lanka into a prosperous future by developing new industries, improving agriculture, broadening the tax base to increase revenue and creating tens of thousands of new jobs.

Under Wickremesinghe, Sri Lanka began negotiating with the international creditors to restructure the country's staggering debt and get the economy back on track. With the agreements on restructuring its sovereign bonds, Sri Lanka will have obtained over $17 billion in debt service relief, the finance ministry said.

The International Monetary Fund approved a four-year bailout program last year, but many Sri Lankans are unhappy over the government’s efforts to increase revenue by raising electricity rates and imposing heavy taxes on professionals and businesses, to meet IMF conditions for its assistance.

Overall conditions have improved after the long dry spell during and after the pandemic. Vital tourism earnings have risen and the Sri Lankan rupee has recovered. But rising prices due to the government's austerity measures are squeezing many households.

“We are in a very critical time” said Murtaza Jafferjee, an economic analyst and chairman of Advocata Institute, a Colombo-based independent policy think tank.

"The economy is looking up,” he said, but has not fully recovered. The government should aim for at least 4% growth this year, instead of its target of 3%. Politicians need to focus on policies that don't just benefit the country's elite, Jafferjee said.

“It is high time that we run this country for the benefit of the 22 million people,” he said.

Sri Lanka’s economic crisis began well before the upheavals of 2022.

Staggering economic mismanagement by successive governments was compounded by poor policy choices and then the pandemic. Rajapaksa pushed through big tax cuts in 2019. Then, he banned imports of chemical fertilizer to preserve Sri Lanka’s scarce foreign reserves, hurting crop yields in a a country largely dependent on agriculture.

With the war in Ukraine, food and fuel prices surged and fuel, cooking gas, medicine and food ran short. Sri Lankans lined up for government rice handouts and charity meals.

Today, inflation has dropped below 5% and there's no need to line up to buy essentials. But key parts of the economy remain in crisis.

Jagath Dissanayake said conditions remain dire for his construction firm in Gampaha, a town located about 30 kilometers (19 miles) north of Colombo after prices of building materials tripled. Most of Dissanayake projects are suspended and he had to lay off two-thirds of his employees.

“People have no money to do new construction as they give priority to buying essentials. We hardly get any new work," Dissanayake said.

His income is down almost 75%, he said, so there is no more dining out and Dissanayake rides a motorbike instead of driving a car, to save money on fuel.

“Of course, there are no queues for petrol anymore, but we don't have enough money to buy it.” he said.

Sri Lanka’s construction industry has shed about 400,000 jobs in the last four years, according to some estimates. Once a booming industry that contributed nearly 12% to the country’s growth figures, its share has dropped to 7% this year.

Many Sri Lankans have sought jobs abroad.

Viraj Maduranga, formerly a teacher in a government school, went to Dubai in 2021 to find work when he became unable to repay loans he had taken to build his house and buy a vehicle.

“Either I had to sell off the house and the car, or find an alternative income. So, I decided to leave. It was not an easy decision for me and my wife, but we have to make sacrifices to build our lives,” said Maduranga, who now works as a teacher in Dubai and won’t be able to vote in the election.

Not everyone is impressed with the promises made by the candidates in this election.

“We have seen it in the past, politicians saying various things, but when they come into power they have simply ignored what they have said during campaigns,” said W.A. Wijewardena, an economic analyst and former deputy governor of Sri Lanka's central bank.

Jafferjee, the economic analyst, said the election is “extremely crucial” for Sri Lanka’s economic recovery. The next president should use his executive powers to “enact pro-consumer policies" and be more open to trade.

“This (crisis) is not insurmountable, but you need to make unpopular choices. What you need basically is a president who looks to grow the pie," said Jafferjee.

In the meantime, Sri Lankans like Maduranga are impatiently waiting for change.

He longs to rejoin his wife and 8-year-old son in Sri Lanka, but still needs to repay his loans.

“This is not the best time to go back," Maduranga said. “I want to live in Sri Lanka as a free man without being indebted to anyone.”

Saaliq reported from New Delhi.

Indian tourists pose for a photograph on a beach in Colombo, Sri Lanka, Tuesday, Sept. 17, 2024. (AP Photo/Rajesh Kumar Singh)

FILE - Sri Lankan President Ranil Wickremesinghe waves to supporters as he arrives to address a public election rally in Minuwangoda, Sri Lanka, Tuesday, Sept. 17, 2024. (AP Photo/Rajesh Kumar Singh, File)

Members of a construction crew take a break from work at the Colombo port, Sri Lanka, Monday, Sept. 16, 2024. (AP Photo/Rajesh Kumar Singh)

A woman buys fruits from a stall at a local wholesale market, in Colombo, Sri Lanka, Wednesday, Sept. 18, 2024. (AP Photo/Rajesh Kumar Singh)

Workers pull a hand cart loaded with sacks of vegetables through a wholesale market in Colombo, Sri Lanka, Friday, Sept. 13, 2024. (AP Photo/Eranga Jayawardena)

A man sells plastic bags on a street in Colombo, Sri Lanka, Friday, Sept. 13, 2024. (AP Photo/Eranga Jayawardena)

Election posters showing portraits of National People's Power's presidential candidate Anura Dissanayake, are pasted on the kitchen walls of an eatery where a cook prepares food for customers in Colombo, Sri Lanka, Monday, Sept. 16, 2024. (AP Photo/Eranga Jayawardena)

Jagath Dissanayake, owner of a private construction firm, supervises work at a building site in Colombo, Sri Lanka, Friday, Sept. 13, 2024. (AP Photo/Eranga Jayawardena)

A man sits next to election posters of opposition leader Sajith Premadasa as he gets a shave from a roadside barber in Colombo, Sri Lanka, Tuesday, Sept. 17, 2024. (AP Photo/Rajesh Kumar Singh)

A couple walks past an election poster showing a portrait of Sri Lankan President Ranil Wickremesinghe in Colombo, Sri Lanka, Monday, Sept. 16, 2024. (AP Photo/Eranga Jayawardena)

Fathima Shiyama, 48, waits for customers next to her food cart in Colombo, Sri Lanka, Tuesday, Sept. 3, 2024. (AP Photo/Eranga Jayawardena)

Fathima Shiyama, 48, prepares local delicacies at home, to be sold later from her food cart, in Colombo, Sri Lanka, Tuesday, Sept. 3, 2024. (AP Photo/Eranga Jayawardena)

Fathima Shiyama, 48, who sells food on a mobile cart to support her five children, speaks to the Associated Press at her residence in Colombo, Sri Lanka, Tuesday, Sept. 3, 2024. (AP Photo/Eranga Jayawardena)

A bird flies past gantry cranes working at the Colombo port, Sri Lanka, Monday, Sept. 16, 2024. (AP Photo/Rajesh Kumar Singh)

MUNICH (AP) — Security has tightened at Oktoberfest in the wake of last month’s deadly knife attack in Solingen in western Germany, and officials warned revelers to expect longer lines at entry points as metal detectors will be deployed for the first time in the Bavarian beer festival's 189-year history.

Authorities say there are no specific threats to the world's largest folk festival, which begins Saturday with the traditional keg-tapping in Munich and runs through Oct. 6. Some 6 million participants, many wearing traditional lederhosen and dirndl dresses, are expected over the course of the event.

The stepped-up security comes after an Aug. 23 attack in Solingen that left three dead and eight wounded. A 26-year-old Syrian suspect was arrested. He was an asylum-seeker who was supposed to be deported to Bulgaria last year but reportedly disappeared for a time and avoided deportation. The Islamic State militant group has claimed responsibility for the violence, without providing evidence.

The violence left Germany shaken and pushed immigration back to the top of the country’s political agenda. In response, the Interior Ministry extended temporary border controls to all nine of its frontiers this week. The controls are set to last six months and are threatening to test European unity.

The effects of the Solingen attack and other recent violence across Germany will also be felt at Oktoberfest. Hand-held metal detectors will be used for the first time, with police and security staff using them on a random basis or following suspicious activity.

“We have had to react to the fact that attacks with knives have increased in recent weeks and months,” Munich Mayor Dieter Reiter told The Associated Press during a media tour of the festival grounds to highlight the new security measures. “We will do everything we can to ensure that nobody comes to Oktoberfest with a knife or other dangerous weapons.”

In addition to some 600 police officers and 2,000 security staff, more than 50 cameras will be installed across the grounds of the festival, which will be fenced off as well. Festival goers also are prohibited from bringing knives, glass bottles and backpacks.

Oktoberfest is no stranger to increased security in the past. In 2016, authorities implemented tighter measures in response to a series of attacks, including when a German teenager fatally shot nine people at a Munich mall before killing himself.

Peter Neumann, a professor of security studies at King’s College London, said Oktoberfest officials are taking a sensible approach to security in light of Solingen, as well as other recent foiled plots across Europe. Extremists and groups like the Islamic State seek locations where an attack would garner international headlines and “cause a lot of terror,” he said.

French authorities say they thwarted three plots against the Olympic and Paralympic Games in Paris and other cities that hosted the summer events, which included plans to attack “ Israeli institutions or representatives of Israel in Paris.” And Austrian officials last month arrested a 19-year-old who had allegedly plotted to attack now-canceled Taylor Swift concerts in Vienna and kill tens of thousands of fans.

“These are all global events where you can expect to cause a lot of attention,” Neumann said.

Neumann said the Islamic State has been gaining momentum during the Israel-Hamas war.

The group referenced the war when it claimed responsibility for the Solingen violence, saying the attacker targeted Christians and that as a “soldier of the Islamic State” he carried out the assaults “to avenge Muslims in Palestine and everywhere.”

Oktoberfest is a difficult event for police to secure, though authorities say there haven't been any concrete threats to the festival.

“It’s an iconic event and this is exactly the kind of event that they’d want to strike,” Neumann said. “But with millions of people — drunk people to be honest — running around, it’s really difficult to control every movement.”

The festival's organizer, Clemens Baumgärtner, promised a safe public space, possibly "the safest place in Germany" during the 16 days of Oktoberfest.

A view of the new ride "Laser Pix", during a press tour at the Oktoberfest, in Munich, Germany, Thursday, Sept. 19, 2024. (Lennart Preiss/dpa via AP)

Police officer patrol, during a press tour at the Oktoberfest, in Munich, Germany, Thursday, Sept. 19, 2024. (Lennart Preiss/dpa via AP)

A brass band plays during a press tour at the Oktoberfest, in Munich, Germany, Thursday, Sept. 19, 2024. (Lennart Preiss/dpa via AP)

Workers stand on a lifting platform during construction work on the Oktoberfest grounds at the main entrance, in Munich, Germany, Wednesday, Sept. 18, 2024. (Peter Kneffel/dpa via AP)