Colombo: Sri Lankan President Chandrika Kumaratunga's ruling party today (Aug 6, 2004) avoided a potentially damaging power struggle and settled for a compromise candidate to replace her as the leader of the ruling party.

Party officials said Kumaratunga's Sri Lanka Freedom Party named former premier Ratnasiri Wickremanayake, 71, as the new leader of their Freedom Alliance coalition with the Marxists, JVP (Janata Vimukti Perumana) or People's Liberation Front.

Kumaratunga's brother, Anura Bandaranaike, 55, had said that he was ready to head the Freedom Alliance while Prime Minister Mahinda Rajapakse was also seen as a serious contender.

However, the party avoided a vote for the post and named Wickremanayake as the sole candidate to be ratified by the central committee next month.

Kumaratunga, who remains President, quit as differences emerged within the Freedom Alliance on reviving peace talks with Tamil Tiger rebels, but Bandaranaike said most of the problems had been settled.