Sri Lanka’s political landscape experienced a seismic shift as President Anura Kumara Dissanayake's National People's Power (NPP) coalition clinched a resounding victory in Thursday’s snap general election. The Marxist-leaning coalition secured 137 of the 196 directly elected parliamentary seats, gaining a two-thirds majority. Projections suggest the NPP’s total tally could exceed 150 seats in the 225-member parliament after proportional seat allocations, granting sweeping legislative powers to Dissanayake.

This decisive mandate paves the way for the president to deliver on promises to combat poverty and potentially abolish the contentious executive presidency, a move he has long championed. The victory also marks a turning point for a nation recovering from its worst economic crisis in decades.

While the NPP's triumph signals political stability, it raises questions about the future of Sri Lanka’s economic policies. Analysts highlight potential challenges stemming from Dissanayake’s pledge to renegotiate aspects of the $2.9 billion IMF bailout program, which was instrumental in stabilizing the economy after the 2022 financial meltdown.

Dissanayake’s coalition surged to 62% of the vote, up from his 42% presidential win in September, reflecting growing support across ethnic and regional lines. The opposition Samagi Jana Balawegaya (SJB) party, led by Sajith Premadasa, secured 35 seats, while the New Democratic Front, linked to former President Ranil Wickremesinghe, managed just three.

"We see this as a critical turning point for Sri Lanka," Dissanayake stated after voting. "The change in political culture that began in September must continue."

Dissanayake, a political outsider in a landscape dominated by dynastic politics, campaigned on reducing taxes, supporting local industries, and expanding welfare programs for those hardest hit by the crisis. However, these pledges could face hurdles if IMF disbursements are delayed due to his plans to tweak fiscal targets, including a primary surplus goal of 2.3% of GDP by 2025.

Economic recovery remains fragile, with the high cost of living persisting as a critical issue. Despite muted celebrations, NPP loyalists lit fireworks in Colombo’s outskirts, underscoring cautious optimism about the future.

“The country has given a clear political mandate, but the key question remains whether this comes at the cost of economic policy stability,” said Raynal Wickremeratne, a research expert at Softlogic Stockbrokers.

As Sri Lanka navigates this new chapter, the NPP’s majority offers an opportunity to enact bold reforms. The coming months will determine whether Dissanayake can balance political promises with the need for sustainable economic recovery.