“Premadasa is making a virtue out of being less authoritarian than the Rajapaksa family but it’s unclear if he has a clear policy program, and even less if he can deliver,” Adeney said.
The support of the minority Tamil and Muslim populations, who together form about 25 per cent of the country’s population, will be crucial for Premadasa.
The winner will inherit a country with an economy where growth has slowed to a more than five-year low of 1.6 per cent in the quarter ended June and has a debt level hovering at 83 per cent of GDP.
“With little clarity on a winner, investors are taking a wait and see approach,” said Adrian Perera,chief operating officer, Equicapital Investments in Colombo. “If Gotabaya wins, there maybe a speculative rally, on expectations he will set up a new government. But for long-term investments to come in, we need to see parliamentary elections concluded and the fiscal budget presented.”