Opinion
Sri Lanka’s Foreign Policy amid Geopolitical Transformations: 1990-2024 – Part IX
(Part VIII of this article appeared yesterday)
Reflections on Perplexity in Sri Lankan Foreign Policy (1990-2024)
Since the end of the Cold War, the three geopolitical spheres of Sri Lanka have been significantly shifted. At the same time, the internal politics and the economy have also faced intense volatility, moving from war to a post-war environment. However, Sri Lanka’s foreign policy moved without a clear strategic direction, often following an inconsistent, zigzagging path. Sri Lanka’s foreign policy objectives shifted frequently, driven more by internal political winds than by a coherent long-term vision. Hence, the country’s foreign policy was proceeding without a clear strategy, pursuing immediate yet undefined goals in an ad hoc manner. As a result, contradictions and inconsistencies became the hallmark of foreign policy. Decisions were often made on the spur of the moment, with little consideration for their alignment with other policy stances within the same administration.
Sri Lanka’s Ministry of Foreign Affairs (MFA) was once staffed by internationally famed, highly skilled foreign policy professionals who possessed deep understanding of global affairs and international trends. These professionals provided essential guidance to political leadership, ensuring the country’s diplomatic effectiveness. However, mirroring broader governance deficits across various sectors of the state, the MFA has later gradually lost its skilled manpower and effectiveness. In particular, following the departure of Minister Lakshman Kadirgamar, who sought to restore order and proper procedures to the MFA, excessive politicisation and the lack of effective refresher programmes on global affairs and diplomacy have severely undermined the ministry’s ability to fulfill its crucial role during this challenging period. As a result, the MFA has struggled to formulate and implement a coherent foreign policy. Internal feuds among staff and the pursuit of political favour for lucrative diplomatic appointments have further eroded its focus on substantive diplomatic engagement. Consequently, the MFA has become increasingly ineffective in advancing Sri Lanka’s foreign policy objectives, reflecting the overall governance deficit facing the Sri Lankan state.
Policy, in general, consists of two fundamental components: clearly identifying and prioritising goals and objectives and developing effective strategies to achieve them. These elements work together to ensure that policies are actionable and aligned with desired outcomes. Policy-making is a dynamic and evolving process that requires continuous assessment of the context in which it operates. At the same time, without viable implementation mechanisms, even the most thoughtfully crafted policies remain theoretical rather than practical. Therefore, successful policy-making demands not only clear objectives and strategies but also robust structures for execution and adaptation to ensure policies translate effectively into real-world implementation. By the same token, even a highly skilled implementation mechanism would become impotent without clearly prioritised objectives and a well-defined implementation strategy. During this period, Sri Lanka struggled, to varying degrees, across all three key aspects of policy-making: setting clear objectives, developing effective strategies, and ensuring successful implementation.
The core element of foreign affairs is a state’s interaction with other states within the international system. While the scope and agency of foreign policy have expanded to include other actors and factors, the state still remains the dominant player. According to Barry Buzan’s categorization (Buzan, 1991) of weak and strong states, Sri Lanka exemplifies a weak state–not due to its military capability or size, but because of its internal structural weaknesses, particularly a lack of socio-political cohesion. Weak states are characterized by poor governance, low political cohesion, a legitimacy deficit, and ideological instability. When a state is structurally weak and insecure—especially a small state in the Global South—this insecurity is reflected in its foreign policy. In Sri Lanka’s case, its domestic vulnerabilities directly shape its foreign policy approaches. A weak state and politically threatened regimes can hardly adopt strong foreign policy stances.
Ethno-political vulnerability has been the primary factor consuming the energy and focus of Sri Lanka’s foreign policy. It remains the central weakness of the state. There were several attempts to build an inclusive state by introducing structural changes to the system Sri Lanka inherited in 1948. However, many of these efforts were abandoned midway due to a lack of political courage and will, especially in the face of opposition. The new constitution proposed in1996, which included provisions for genuine power devolution to the regions, was delayed in an attempt to gain opposition support. Ultimately, it was effectively rejected in parliament. Meanwhile, the steady erosion of democracy and the politicisation of administrative institutions gradually undermined the legitimacy of the state. Economic mismanagement and corruption further weakened the economy. As a result, three key domestic vulnerabilities became defining features of Sri Lankan polity—ethnic, economic, and political.
The hard-fought military victory and the end of the war in 2009 presented a historic opportunity to transform negative peace into a positive peace by laying the foundation for an inclusive and stable state. However, Sri Lanka failed to seize this moment. As a result, new challenges relating to ethnic reconciliation emerged with new vigor in the post-war context and state’s ethnic vulnerabilities played a crucial role in shaping foreign policy, as issues such as transitional justice, accountability, and the full implementation of the 19th Amendment shifted from being purely domestic matters to central foreign policy issues. When different political leaders within the same government express contradictory views—or when the same leaders take inconsistent positions over time—Sri Lanka’s Ministry of Foreign Affairs and its diplomats struggle to justify the country’s stance before the international community. As a small state that is both economically and politically fragile, Sri Lanka cannot pursue a strong foreign policy without effectively addressing these domestic vulnerabilities.
Sri Lanka’s economic vulnerability stems from both structural weaknesses and internal mismanagement of the economy. As a developing economy in the Global South, the country has faced deep-rooted structural weaknesses that have left it dependent on external forces for economic stability. Sri Lanka’s economy has long faced structural deficiencies, relying heavily on key sources such as tourism, export-oriented garments, and remittances. Additionally, high levels of debt—primarily due to excessive borrowing from international creditors—have created a cycle of dependency on foreign aid and international financial institutions. Clearly demarcating the internal policy sphere from the external one is difficult, as structural economic vulnerabilities both influenced policy priorities and constrained the pursuit of a strong foreign policy.
Even more pressing issue is the mismanagement of the economy and widespread corruption, both of which have severely undermined Sri Lanka’s economic stability. Especially, the post-war governments have pursued unsustainable fiscal policies, excessive borrowing, and poor allocation of public resources. Corruption has further deepened the crisis, marked by allegations of fund misappropriation using political power, a lack of financial transparency, and nepotism in economic decision-making. These issues have eroded investor confidence, discouraged foreign direct investment, and contributed to capital flight. Given Sri Lanka’s reliance on foreign assistance and international financial institutions, its ability to take strong, independent stances on economic and political matters is significantly constrained. Economic survival often depends on complying with the conditions set by lenders. Economic vulnerabilities, stemming from the governments’ economic practices, significantly impact Sri Lanka’s foreign policy, often constraining its ability to act independently.
Ultimately, these vulnerabilities are directly linked to the modus operandi of governing regimes. But why did political leadership behave in this manner? The lack of vision cannot be solely attributed to the subjective traits of individual leaders. Rather, systemic and institutional factors play a crucial role in shaping decision-making. However, this does not absolve political leaders of responsibility for foreign policy failures. Too often, they prioritize personal political interests over national priorities, leading to governance and diplomatic shortcomings.
Even after the decisive military victory over the LTTE, the regime in power remained threatened and insecure. The deployment of armed squads—both in uniform and plainclothes—and the use of force against civilians engaged in legitimate, non-violent protests are not characteristics of a stable and confident regime. Instead, such actions reflect the behaviour of a weak state and a threatened leadership. Even before the Aragalaya, successive regimes repeatedly used military force against peaceful protesters, as seen in Katunayake (June 2011), Chilaw (February 2012), and Rathupaswala (August 2013). A state that feels threatened and insecure cannot pursue a strong foreign policy.
The insecurity of regimes arises from their weak and fragile social and economic foundations. A dependent and weak economy has failed to give birth to strong, independent, and self-sustaining economic elites. Instead, these elites rely heavily on the state for their economic survival. A defining feature of Sri Lankan politics is the emergence and dominance of a political class that alternates in power. This political class coincided with the expansion of the public sector. This paved the way for the political class to siphon on state resources using political power. As a result, economic decisions have often been driven by personal interests rather than national priorities— a dynamic that is also reflected in the country’s foreign policy.
After years of war, the Sri Lankan people, regardless of ethnic divisions, are yearning for political reforms to strengthen democracy and good governance. However, successive politically insecure regimes continue to falter in implementing democratic reforms, often prioritising their own survival over long-term institutional change. This is evident in the constant vacillation of political leaders and their contradictory statements to the international community. This insecurity is evident in the constant vacillation of political leaders regarding reform efforts, as well as their contradictory statements to the international community. What we are witnessing is a steady backsliding of democracy and the rise of authoritarian tendencies, which are characteristic of a weak regime.
The Aragalaya highlighted a crucial truth: economic crises are often the result of deep-seated political failures. Sri Lanka’s financial collapse was not merely a product of mismanaged economic policies but a consequence of prolonged corruption, governance deficit, and unchecked power. The economic collapse exposed how unchecked power, lack of transparency and poor decision-making can destabilise an entire economy, underscoring the urgent need for political accountability and structural reforms.
In the short term, urgent economic measures are necessary to mitigate the impact of bankruptcy and restore some level of financial stability. Debt restructuring, securing international assistance, promoting exports, and implementing fiscal discipline are critical steps in this process. A sustainable solution requires addressing the underlying political crisis that initially triggered economic turmoil. Without political reforms—such as strengthening democratic institutions, ensuring accountability, curbing corruption, and promoting inclusive governance—economic policies will not succeed. Economic stability, investor confidence, and sustainable growth all hinge on these reforms. Political reform is the sine qua non of a strong foreign policy.
One of the key responsibilities and challenges facing the new NPP government is pursuing a strong foreign policy with a strategic perspective. This is a formidable task that requires accurately identifying foreign policy priorities, selecting viable strategies appropriate for a small island state, and advancing them prudently while carefully assessing critical developments in regional and global political spheres. The Ministry of Foreign Affairs (MFA), a crucial instrument for implementing foreign policy, is currently in a state of disarray and confusion. Restoring stability through the de-politicisation of its administration and strengthening the professional development of its staff through targeted programmes remain urgent priorities.
Foreign policy is a key aspect of statecraft. Given its linkages to the policy spheres, foreign policy cannot be isolated from state’s broader policy directions. A comprehensive approach with well- defined policy orientation is essential. The significance of a coordinated foreign policy with a strategic vision aligned with national interests has grown even more critical due to pivotal developments in Sri Lanka’s external geopolitical environment, making it no longer possible to continue responding in an ad-hoc manner. How to pursue relative autonomy vis-à-vis India while getting benefits from India’s economic and scientific advancements is decided with a clear policy direction with realistic
understanding with our strengths and weaknesses. Our role amid the emerging power competition between great powers in the Indian Ocean needs to be decided with a clear perception of our national interests. At the global level, the global shift of power balance that made 21st century an Asian century is critically important to a strategically located small state. Navigating Sri Lanka’s position in the highly volatile Indian Ocean where the direction of global power is decided requires a proper evaluation of our national priorities, rather than advancing the narrow self-interests of the ruling class.
A strong foreign policy depends on an objective evaluation of Sri Lanka’s national interests, which in turn requires a strong state. In the Buzanian sense, a strong state—marked by institutional stability, legitimacy, and internal cohesion—enables the pursuit of a coherent and independent foreign policy. Hence, the necessity of a strong foreign policy underscores the critical importance of comprehensive state reforms. Political reforms aimed at dismantling entrenched political authority and economic power linked to it is essential for building a strong foreign policy. In the post-war years, political reforms have been held hostage by military victory and war triumphalism. However, critical state reforms can no longer be postponed.
State reforms are integral to democratic political reform. The link between democratic governance and a strong foreign policy is undeniable. A capable, depoliticized foreign policy workforce that provides informed policy input is essential for a healthy foreign policy. However, corruption, nepotism, and governance deficits—often tied to the dominance of the political class—undermine these efforts. This same class has also been a driving force behind democratic backsliding. Institutionalizing good governance and the rule of law requires comprehensive democratic reforms in both institutions and processes.
The thrust of the National People’s Power (NPP) government’s mandate centers on implementing long-overdue democratic reforms. These reforms are essential not only for strengthening internal governance but also for shaping a credible and effective foreign policy. In the long run, the success of the NPP’s foreign policy will depend on its ability to fulfill its domestic commitments to political and institutional reforms, one that aligns with both the aspirations of its people and international democratic standards. However, achieving comprehensive democratic reform is a gradual process that requires political will, courage and strategic planning. (Concluded)
References
Aryasinghe, Ravinatha. ‘Sri Lankawa ha kalapeeya sahayogathawa” Jagath ha Kalapeeya Sandharbhahehila Sri Lankawa (in Sinhala), Colombo: Bandaranaike Center for International Studie, 1997.
Buzan, Barry. 2002. “South Asia moving Towards Transformation: Emergence of India as a Great Power”, International Studies, 39:1, 2.
Buzan, Barrr. 1991. People, States and Fear – Agenda for International Security Studies in the Pos-Cold War Era. Boulder, Lynn Rienner Publishers.
Chang, Michael. 2024. ” India’s Secretive Nuclear Submarine Base Takes Shape in Andhra Pradesh,” Military News, 06 June 2024. https://military.news/ins-varsha-india-s-secretive-nuclear-submarine-base-takes-shape-in-andhra-pradesh
Deb. Sheershoo. 2021, “INS Varsha: India’s Secret Nuclear Submarine base”, 2021, DefenceXP, www.defencexp.com › ins-varsha-indias-secret-submarine-nuclear-base.
Forbes India, 10 January 2025. https://www.forbesindia.com/article/explainers/top-10-largest-economies-in-the-world/86159/1
Global Firepower 2024, www.globalfirepower.com
Jayathilake, Dayan. “Premdasa: ‘Savadeshya’ & Docial Democracy,’ Colombo Telegraph, 24 June 2014
Jayawardane, Amal. 2025. “Sri Lanka’s Foreign Policy Challenges in the Post-War Period”, in Gamini Keerawella and Amal Jayawardane , eds., Reflections on the Continuing Crises of Post-War Sri Lanka. Colombo, Design Systems (Pvt) Ltd, 2025
Jennings, Ivor. 1951. Commonwealth in Asia. London. Oxford University Press: P.113
Nixon. Richard M, 1973. United States Foreign Policy for the 1970s: Shaping a Durable Peace – A Report to the Congress, GPO, 1973.
The Hindu, 04-01-2022
Pecotic, Adrian. 2019.”Whoever Predicts the Future Will Win the AI Arms Race”, Foreign Affairs, 5 March 2019.
Rehman, Iskander. 2015. Murky Waters: Naval Nuclear Dynamics in the Indian Ocean. Washington D.C: Carnegie Endowment for International Peace.
Salter, Mark. 2015. To End a Civil War- Norway’s Peace Engagement in Sri Lanka, London, Hurst & Company.
Smith, Chris. 2003.In the Shadow of a Ceasefire: The Impact of Small Arms Availability and Misuse in Sri Lanka – Small Arms Survey – Occasional Paper No.11 Geneva. Graduate Institute of International Studies, October 2003
World Economic Forum. 2019. “We’ve entered the Asian Century and there is no turning back”, October 11, 2019. https://www.weforum.org/agenda/2019/10/has-world-entered-asian-century-what-does-it-mean/
by Gamini Keerawella
Opinion
Tribute to a distinguished BOI leader
Mr. Tuli Cooray, former Deputy Director General of the Board of Investment of Sri Lanka (BOI) and former Secretary General of the Joint Apparel Association Forum (JAAF), passed away three months ago, leaving a distinguished legacy of public service and dedication to national economic development.
An alumnus of the University of Colombo, Mr. Cooray graduated with a Special Degree in Economics. He began his career as a Planning Officer at the Ministry of Plan Implementation and later served as an Assistant Director in the Ministry of Finance (Planning Division).
He subsequently joined the Greater Colombo Economic Commission (GCEC), where he rose from Manager to Senior Manager and later Director. During this period, he also served at the Treasury as an Assistant Director. With the transformation of the GCEC into the BOI, he was appointed Executive Director of the Investment Department and later elevated to the position of Deputy Director General.
In recognition of his vast experience and expertise, he was appointed Director General of the Budget Implementation and Policy Coordination Division at the Ministry of Finance and Planning. Following his retirement from government service, he continued to contribute to the national economy through his work with JAAF.
Mr. Cooray was widely respected as a seasoned professional with exceptional expertise in attracting foreign direct investment (FDI) and facilitating investor relations. His commitment, leadership, and humane qualities earned him the admiration and affection of colleagues across institutions.
He was also one of the pioneers of the BOI Past Officers’ Association, and his passing is deeply felt by its members. His demise has created a void that is difficult to fill, particularly within the BOI, where his contributions remain invaluable.
Mr. Cooray will be remembered not only for his professional excellence but also for his integrity, humility, and the lasting impact he made on those who had the privilege of working with him.
The BOI Past Officers’ Association
jagathcds@gmail.com
Opinion
When elephants fight, it is the grass that suffers
“As a small and open country, Singapore will always be vulnerable to what happens around us. As Lee Kuan Yew used to say: “when elephants fight, the grass suffers, but when elephants make love, the grass also suffers“. Therefore, we must be aware of what is happening around us, and prepare ourselves for changes and surprises.” – Prime Minister Lee Hsien Loong, during the debate on the President’s Address in Singapore Parliament on 16 May, 2018, commenting on the uncertain external environment during the first Trump Administration.
“When elephants fight, it is the grass that suffers”
is a well-known African proverb commonly used in geopolitics to describe smaller nations caught in the crossfire of conflicts between major powers. At the 1981 Commonwealth conference, when Tanzanian President Julius Nyerere quoted this Swahili proverb, the Prime Minister Lee Kuan Yew famously retorted, “When elephants make love, the grass suffers, too”. In other words, not only when big powers (such as the US, Russia, EU, China or India) clash, the surrounding “grass” (smaller nations) get “trampled” or suffer collateral damage but even when big powers collaborate or enter into friendly agreements, small nations can still be disadvantaged through unintended consequences of those deals. Since then, Singaporean leaders have often quoted this proverb to highlight the broader reality for smaller states, during great power rivalry and from their alliances. They did this to underline the need to prepare Singapore for challenges stemming from the uncertain external environment and to maintain high resilience against global crises.
Like Singapore, as a small and open country, Sri Lanka too is always vulnerable to what happens around us. Hence, we must be alert to what is happening around us, and be ready not only to face challenges but to explore opportunities.
When Elephants Fight
To begin with, President Trump’s “Operation Epic Fury”.
Did we prepare adequately for changes and surprises that could arise from the deteriorating situation in the Gulf region? For example, the impact the conflict has on the safety and welfare of Sri Lankans living in West Asia or on our petroleum and LNG imports. The situation in the Gulf remains fluid with potential for further escalation, with the possibility of a long-term conflict.
The region, which is the GCC, Iraq, Iran, Israel, Jordan, Syria and Azerbaijan (I believe exports to Azerbaijan are through Iran), accounts for slightly over $1 billion of our exports. The region is one of the most important markets for tea (US$546 million out of US$1,408 million in 2024. According to some estimates, this could even be higher). As we export mostly low-grown teas to these countries, the impact of the conflict on low-grown tea producers, who are mainly smallholders, would be extremely strong. Then there are other sectors like fruits and vegetables where the impact would be immediate, unless of course exporters manage to divert these perishable products to other markets. If the conflict continues for a few more weeks or months, managing these challenges will be a difficult task for the nation, not simply for the government. It is also necessary to remember the Russia – Ukraine war, now on to its fifth year, and its impact on Sri Lanka’s economy.
Mother of all bad timing
What is more unfortunate is that the Gulf conflict is occurring on top of an already intensifying global trade war. One observer called it the “mother of all bad timing”. The combination is deadly.
Early last year, when President Trump announced his intention to weaponise tariffs and use them as bargaining tools for his geopolitical goals, most observers anticipated that he would mainly use tariffs to limit imports from the countries with which the United States had large trade deficits: China, Mexico, Vietnam, the European Union, Japan and Canada. The main elephants, who export to the United States. But when reciprocal tariffs were declared on 2nd April, some of the highest reciprocal tariffs were on Saint Pierre and Miquelon (50%), a French territory off Canada with a population of 6000 people, and Lesotho (50%), one of the poorest countries in Southern Africa. Sri Lanka was hit with a 44% reciprocal tariff. In dollar terms, Sri Lanka’s goods trade deficit with the United States was very small (US$ 2.9 billion in 2025) when compared to those of China (US$ 295 billion in 2024) or Vietnam (US$ 123 billion in 2024).
Though the adverse impact of US additional ad valorem duty has substantially reduced due to the recent US Supreme Court decision on reciprocal tariffs, the turbulence in the US market would continue for the foreseeable future. The United States of America is the largest market for Sri Lanka and accounts for nearly 25% of our exports. Yet, Sri Lanka’s exports to the United States had remained almost stagnant (around the US $ 3 billion range) during the last ten years, due to the dilution of the competitive advantage of some of our main export products in that market. The continued instability in our largest market, where Sri Lanka is not very competitive, doesn’t bode well for Sri Lanka’s economy.
When Elephants Make Love
In rapidly shifting geopolitical environments, countries use proactive anticipatory diplomacy to minimise the adverse implications from possible disruptions and conflicts. Recently concluded Free Trade Agreement (FTA) negotiations between India and the EU (January 2026) and India and the UK (May 2025) are very good examples for such proactive diplomacy. These negotiations were formally launched in June 2007 and were on the back burner for many years. These were expedited as strategic responses to growing U.S. protectionism. Implementation of these agreements would commence during this year.
When negotiations for a free trade agreement between India and the European Union (which included the United Kingdom) were formally launched, anticipating far-reaching consequences of such an agreement on other developing countries, the Commonwealth Secretariat requested the University of Sussex to undertake a study on a possible implication of such an agreement on other low-income developing countries. The authors of that study had considered the impact of an EU–India Free Trade Agreement on the trade of excluded countries and had underlined, “The SAARC countries are, by a long way, the most vulnerable to negative impacts from the FTA. Their exports are more similar to India’s…. Bangladesh is most exposed in the EU market, followed by Pakistan and Sri Lanka.”
So, now these agreements are finalised; what will be the implications of these FTAs between India and the UK and the EU on Sri Lanka? According to available information, the FTA will be a game-changer for the Indian apparel exporters, as it would provide a nearly ten per cent tariff advantage to them. That would level the playing field for India, vis-à-vis their regional competitors. As a result, apparel exports from India to the UK and the EU are projected to increase significantly by 2030. As the sizes of the EU’s and the UK’s apparel markets are not going to expand proportionately, these growths need to come from the market shares of other main exporters like Sri Lanka.
So, “also, when elephants make love, the grass suffers.”
Impact on Sri Lanka
As a small, export dependent country with limited product and market diversification, Sri Lanka will always be vulnerable to what happens in our main markets. Therefore, we must be aware of what is happening in those markets, and prepare ourselves to face the challenges proactively. Today, amid intense geopolitical conflicts, tensions and tariff shifts, countries adopt high agility and strategic planning. If we look at what our neighbours have been doing in London, Brussels and Tokyo, we can learn some lessons on how to navigate through these turbulences.
(The writer is a retired public servant and can be reached at senadhiragomi@gmail.com)
by Gomi Senadhira
Opinion
QR-based fuel quota
The introduction of the QR code–based fuel quota system can be seen as a timely and necessary measure, implemented as part of broader austerity efforts to manage limited fuel resources. In the face of ongoing global fuel instability and economic challenges, such a system is aimed at ensuring equitable distribution and preventing excessive consumption. While it is undeniable that this policy may disrupt the daily routines of certain segments of the population, it is important for citizens to recognize the larger national interest at stake and cooperate with these temporary measures until stability returns to the global fuel market.
At the same time, this initiative presents an important opportunity for the Government to address long-standing gaps in regulatory enforcement. In particular, the implementation of the QR code system could have been strategically linked to the issuance of valid revenue licenses for vehicles. Restricting QR code access only to vehicles that are properly registered and have paid their revenue dues would have helped strengthen compliance and improve state revenue collection.
Available data from the relevant authorities indicate that a significant number of vehicles—especially three-wheelers and motorcycles—continue to operate without valid revenue licences. This represents a substantial loss of income to the State and highlights a weakness in enforcement mechanisms. By integrating the fuel quota system with revenue license verification, the government could have effectively encouraged vehicle owners to regularise their documentation while simultaneously improving fiscal discipline.
In summary, while the QR code fuel system is a commendable step toward managing scarce resources, aligning it with existing regulatory requirements would have amplified its benefits. Such an approach would not only support fuel conservation but also enhance government revenue and promote greater accountability among vehicle owners.
Sariputhra
Colombo 05
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