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A stalwart of Sri Lankan politics, Gunawardena, 73. earlier served as the foreign minister and education minister.
The six-time prime minister succeeded Gotabaya Rajapaksa who fled Sri Lanka and resigned from his post last week after mass protests over his handling of the economy.
Pakistan also jumped ahead of Sri Lanka in the World Test Championship standings with only South Africa (71.43%) and Australia (70%) above them.
The win for acting President Ranil Wickremesinghe, opposed by many ordinary Sri Lankans, could lead to more demonstrations by people.
Wickremesinghe will face-off against Dullas Alahapperuma, a staunch Sinhala Buddhist nationalist, and the leftist Janatha Vimukthi Peramuna leader Anura Kumara Dissanayake.
Victories of this nature carry with them the potential to elevate the mood of the entire nation and bring in a wave of optimism and positivity that Sri Lanka needs so urgently.
Sri Lanka's ruling party has said they would nominate interim President Ranil Wickremesinghe to the presidency when the Parliament elects a new President on July 20.
Rajapaksa, who had promised to resign on Wednesday, appointed Prime Minister Ranil Wickremesinghe as the acting President hours after he fled the country.
Wickremesinghe is under pressure to quit before the expected resignation of President Gotabaya Rajapaksa, who is said to be flying from the Maldives to Singapore.
Sri Lanka is witnessing an escalating political crisis and a fresh wave of protests triggered by the fleeing of embattled President Gotabaya Rajapaksa from the country.