"With her clear cry against the world's racism and oppression, Karam possesses - both in her writing and in her activism - the passionate resistance and commitment that also characterized Sara Lidman," the citation states.
Balsam Karam debuted in 2018 with the critically acclaimed novel "Hendelsehorisonten".
"I am incredibly happy, touched and honored by this award. Sara Lidman has been a guiding star throughout my writing life," she said in a press release.
The prize was established by the Sara Lidman Society to honor the author's memory. This year's prize will be awarded at Sara Day in Umeå on March 22.
