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)

BUENOS AIRES (AP) — A hat trick and two assists: Lionel Messi came back in style for Argentina in its 6-0 home win in a South American World Cup qualifying match on Tuesday.

Messi, who missed two rounds of the competition in October due to a right ankle injury, played from start to finish on Tuesday in front of raucous fans at the Monumental de Nuñez Stadium, who chanted his name after he opened the scoring in the 19th minute.

Its archrival Brazil, whose coach Dorival Júnior was under pressure earlier this month, got some relief with a convincing performance in a 4-0 home win against Peru.

Argentina remained as leaders of the round-robin competition with 22 points after 10 matches, three points clear of second-place Colombia, who earlier beat Chile 4-0. Uruguay, which earlier had a goalless draw with Ecuador, and Brazil come next with 16 points.

The Uruguayans are in third position on goal difference.

Ecuador and Paraguay follow, with 13 points each, but the Ecuadorians have one more win to take the fifth position.

The top six teams in the region will secure automatic berths in the next World Cup. The seventh-place team, currently Bolivia, will play in an international playoff for a spot in the tournament in 2026.

Two more rounds of South American World Cup qualifying will be played in November.

Messi's first goal came after a mistake by a Bolivian defender, who missed a pass and allowed the 37-year-old Messi to run freely and finish unchallenged in front of goalkeeper Billy Viscarra. Messi assisted on Lautaro Martínez's goal in the 42th minute and gave a decisive pass once again in added time on a goal by Julián Álvarez.

Argentina appeared to slow its pace after the break, but scored again with Thiago Almada in the 69th minute. The striker scored from close range after a low cross by Nahuel Molina.

Messi's show had two great finishing touches from the edge of the box, the first in the 84th and the second in the 86th minute.

“We enjoyed this, we are happy to be here playing in Argentina,” said Messi, who once again refused to say whether he will play in the next World Cup in 2026. “This could be one of the last (matches in front of the Argentinian crowd).”

Bolivia, which is seeking to qualify for the World Cup for the first time in 30 years, remains in contention with 12 points.

This month's rounds of South American qualifying were important for coach Dorival Júnior. His team was knocked out in the quarterfinals of the latest Copa America and was struggling against rivals it used to beat easily, such as Paraguay and Venezuela.

Júnior's chances of success seemed low in matches against Chile and Peru due to injuries affecting several of his starters; goalkeeper Alisson, defender Éder Militão and striker Vinicius Júnior were all out. But a last-minute win against the Chileans and a convincing display against the Peruvians will give the Brazil coach some relief.

Raphinha scored from the spot twice to put Brazil in front in Brasilia, the first in the 38th minute and the second in the 54th.

Substitute Andreas Pereira made more than 60,000 fans at the National Stadium gasp when he scored with a volley in the 71st minute. Another substitute, Luiz Henrique, scored for the second consecutive match for the national team with a classy shot from the edge of the box.

“These were two matches that we controlled well,” Raphinha said. “We are far from perfection, but we are on the right track.”

Chile's loss to Colombia has placed the job of coach Ricardo Gareca at risk. Davinson Sánchez, Luis Díaz, Jhon Durán and Luis Sinistierra scored the goals for Colombia. Chile is in last place in the qualifying group with only five points.

Paraguay beat Venezuela 2-1 and moved into a qualifying position in the standings. Jon Aramburo opened the scoring for the visitors in the 25th minute, but striker Antonio Sarabia came off the bench to win it for the hosts with goals in the 59th and 74th minutes.

Savarese reported from Sao Paulo

AP soccer: https://apnews.com/hub/soccer

Brazil's Raphinha, left, celebrates after scoring his side's second goal from the penalty spot against Peru during a qualifying soccer match for the FIFA World Cup 2026 at Mane Garrincha Stadium in Brasilia, Brazil, Tuesday, Oct. 15, 2024. (AP Photo/Eraldo Peres)

Brazil's Rodrygo, left, is challenged by Peru's Luis Advincula during a qualifying soccer match for the FIFA World Cup 2026 at Mane Garrincha Stadium in Brasilia, Brazil, Tuesday, Oct. 15, 2024. (AP Photo/Eraldo Peres)

Referee Esteban Ostojich points to the penalty spot after a VAR review to grant Brazil a penalty during a qualifying soccer match for the FIFA World Cup 2026 against Peru at Mane Garrincha Stadium in Brasilia, Brazil, Tuesday, Oct. 15, 2024. (AP Photo/Eraldo Peres)

Brazil's Luiz Henrique celebrates scoring his side's fourth goal against Peru during a qualifying soccer match for the FIFA World Cup 2026 at Mane Garrincha Stadium in Brasilia, Brazil, Tuesday, Oct. 15, 2024. (AP Photo/Eraldo Peres)

Argentina's Lionel Messi, left, celebrates with teammate Thiago Almada after scoring his side's fifth goal against Bolivia during a World Cup 2026 qualifying soccer match at Monumental stadium in Buenos Aires, Argentina, Tuesday, Oct. 15, 2024. (AP Photo/Gustavo Garello)

Argentina's Lionel Messi scores his side's sixth goal against Bolivia during a World Cup 2026 qualifying soccer match at Monumental stadium in Buenos Aires, Argentina, Tuesday, Oct. 15, 2024. (AP Photo/Natacha Pisarenko)

Argentina's player celebrate after Lionel Messi scored their sixth goal against Bolivia during a World Cup 2026 qualifying soccer match at Monumental stadium in Buenos Aires, Argentina, Tuesday, Oct. 15, 2024. (AP Photo/Natacha Pisarenko)

Uruguay's Nahitan Nandez, left, and Ecuador's Alan Minda compete for the ball during a FIFA World Cup 2026 qualifying soccer match at the Centenario stadium in Montevideo, Uruguay, Tuesday, Oct. 15, 2024. (AP Photo/Matilde Campodonico)

Uruguay's coach Marcelo Bielsa reacts during a FIFA World Cup 2026 qualifying soccer match against Ecuador at the Centenario stadium in Montevideo, Uruguay, Tuesday, Oct. 15, 2024. (AP Photo/Matilde Campodonico)

Chile's coach Ricardo Gareca gestures during a FIFA World Cup 2026 qualifying soccer match against Colombia at the Metropolitano Roberto Melendez stadium in Barranquilla, Colombia, Tuesday, Oct. 15, 2024. (AP Photo/Fernando Vergara)

Colombia's Luis Diaz celebrates scoring his side's second goal against Chile during a FIFA World Cup 2026 qualifying soccer match at the Metropolitano Roberto Melendez stadium in Barranquilla, Colombia, Tuesday, Oct. 15, 2024. (AP Photo/Fernando Vergara)

Argentina's Lionel Messi looks on during a World Cup 2026 qualifying soccer match against Bolivia at Monumental stadium in Buenos Aires, Argentina, Tuesday, Oct. 15, 2024. (AP Photo/Natacha Pisarenko)

Argentina's Lautaro Martinez, celebrates with teammate Lionel Messi after scoring his side's 2nd goal against Bolivia during a World Cup 2026 qualifying soccer match at Monumental stadium in Buenos Aires, Argentina, Tuesday, Oct. 15, 2024. (AP Photo/Natacha Pisarenko)