Sharma is a former Australian ambassador to Israel, who represented the eastern Sydney seat of Wentworth in the House of Representatives, before losing that to Allegra Spender at the last election.
A moderate in the Liberal Party, he beat out former state minister Andrew Constance and former ACT Senator Zed Seselja, who was backed by Peter Dutton.
Sharma paid tribute to his predecessor as an “outstanding” senator and minister.
“I am privileged to have this opportunity to follow Marise, and her extraordinary contributions – from helping to establish the historic AUKUS partnership to the first ever ASEAN Comprehensive Strategic Partnership,” he said, in a statement.
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“I would like to thank the Party members for the opportunity to hold the Albanese Government to account in the Senate over its many missteps and wrong decisions, and to fight for the many households across NSW struggling to deal with Labor’s cost of living crisis.”
“I believe strongly in the need to safeguard Australia’s future for our children, and so I have always been drawn to public service.
“The opportunity to serve in the Senate will allow me to fight for our nation’s national security interests in a time of greater global turmoil.”