Features
The convoluted LNG–NG story: What do we need? LNG or NG or neither?
By Eng. Parakrama Jayasinghe
parajaysinghe@gmail.com
I am not a fan of natural gas either in its gaseous state NG or the liquefied state LNG, both of which are very much under discussion now locally and at COP 26 in Glasgow. At the same time, I would like to consider myself a realist with the wellbeing and needs of Sri Lanka receiving the highest priority.
Natural gas, mostly Methane (CH4), is present in deep underground strata in large pockets or closer to the surface in a more dispersed manner, emanating from decaying biomass and also unfortunately emitted by ruminating bovine.
Those who enjoyed this natural but diminishing fossil fuel resource in their own territorial land mass or with access to neighbours in the same land mass could do so in it’s gaseous state, commence exploiting by laying extensive gas pipe lines sometimes running thousands of kilometres
But in recent decades , with larger volumes being discovered (with the USA and Canada exploiting environmentally disastrous tar sands and fracking practices), the lure of this seemingly economical and decidedly less polluting fossil fuel, has attracted even those countries not endowed with any indigenous gas resources on their own or neighbours with such resources accessible by pipelines. This has led to the development of the process of liquefaction of the NG by cooling down to about – 160 degrees under high pressure, purely for the purpose of economically acceptable logistics for transport mainly by sea, creating the LNG concept and market.
However, since NG can be used only in its gaseous form, at the recipient’s end re-gasification facilities are required and were implemented on land close to the point of use or in logistical distribution terminals. The oil and gas industry using their ingenuity came up with a further twist by development of the Floating Storage and Re Gasification Units (FSRU), designed to serve those who could not deploy the land based re-gasification facilities located on land as these could be quite expensive. As the name suggests, these are designed as floating vessels moored close to the point of use, and the LNG is delivered to the FSRUs by bulk NG carriers. The re-gasified NG is delivered in relatively short pipelines to the land based consumption units for example power plants.
This is decidedly a simple explanation for the understanding of laymen. There are extensive and detailed explanations given in several articles by Eng. Nalin Gunasekera, a renowned international expert on the subject, in the Daily News of 3, 4 and 5 November and the Sunday Island of 7 November 2021, for those interested in gaining a more in depth understanding of the issues associated with these systems.
However, my purpose in writing this comment is not to discuss such technical intricacies but to examine how Sri Lanka should evaluate the options and the best approach for our benefit if we are to consider either LNG or NG. As already mentioned, given the choice, I would not like having to use NG in any form. It is a fossil fuel and it is now recognised as a very significant contributor to Global Warming, being 80 times more potent than CO2 in the short term. But it has the advantage of being a cleaner burning fuel, devoid of a plethora of dangerous and toxic pollutants released to the entire exosphere.
What are Sri Lanka’s Options ?
Some important issues must be recognised prior to seeking a reply to this query. Viz:
We have now firmly established the target of 70% renewable energy contribution for power generation by 2030
The current forecasts the 30% contribution by fossil fuels in 2030 is 8997 GWh Vs the current contribution of 9000 GWh ( CEB 2020 statistics), which leaves no room for any additional fossil power plants, except as replacements for any due to be retired shortly. The 350 MW Sobhadhanawi plant can be justified only in this context.
The 900 MW Lak Vijaya coal power plant may have a residual economic life of about 25 years.
The price of coal has sky rocketed, reportedly to over $ 240 per ton at source and no suppliers even at that price to Sri Lanka
The price of crude oil too has shot up to $ 85 per BBL and seems to hold at that level.
As such, using NG to meet the 30% gap appears to be an option and environmentally less damaging at least at point of use, provided the cost of generation is acceptable.
The comparison between the CEB tender for the FSRU only, without considering the LNG supply cost and mechanism, with the NFE proposal, which includes a monopoly on supply of LNG at unknown prices, is most illogical and has no meaning, at all. Talk about comparing one rotten apple with an even more rotten orange.
In spite of the grave doubts cast by Eng. Nalin Gunesekera, there is a possibility of attracting investors to develop the Mannar gas resource due to reasons given later on

Where does that leave us? Have we no options at all?
To start with, there can be no justification to continue with this love affair with LNG, given that it will compel Sri Lanka to continue purchase of a fossil fuels with scarce Dollars and at prices on which we have absolutely no control. The attraction of $ 250 Million for the sale of a valuable national asset is no justification, however tight the present foreign exchange situation is, a hollow relief as it will result in draining out several billions of dollars in a few short years.
Next, an FSRU is an inevitable appendage to go with the LNG supplies. Eng. Gunasekera has gone to great lengths to explain the complexities of this system and the high degree of expenditure required for its implementation and operation as well as the great many risks involved in the whole deal. He comes from an expert with decades of experience in this sector, and we will indeed be fool hardy to ignore his warnings and fall into a trap, from which we have no escape.
The whole process of this attempt to get NG as an alternative source of fuel, without anyone competent, establishing the possible means of supply, and compounding the problem by awarding a contract for the construction of a power plant is laughable, if not for the tragic mess that has landed Sri Lanka in. This is even more tragic considering that there has been no in depth re-evaluation on financial and economic feasibility based on current supply and price issues, done before deciding to make an award for a project tendered for in 2016. Sri Lanka having painted itself into a corner, the solution is not to get blackmailed but to dump the LNG and FSRU options even at this late stage. It has been calculated by the SLSEA that even with the most optimistic assumptions on current prices of LNG the cost of generation with LNG will be of the order of Rs 35.00 per kWh. This can only go up with continued depreciation of the rupee and the price trends of the LNG.
Just for comparison, the Siyambaladuwa solar project is expected to generate electricity at Rs 11.00 per kWh and the Mannar Wind Plant is generating at less than Rs 10.00 per kWh. The current cost of adding batteries to make these firm sources of electricity generation is only Rs 8.50 per kWh and is expected to decline sharply in the coming years to Rs. 3.50 per kWh by 2025.
What about Yugadhanawi Power Plant and the supposed share sale of 40% shares to the New Fortress Energy ( NFE)? If this deal is already confirmed and the $ 250 Million is already received, then this share deal on its own would be carried out. But there cannot be any additional conditions such as a monopoly of supply of LNG, attached to this sale. Such conditions are totally illegal and we can only hope that the present litigation will support this point of view.
At present, the Yugadhanawi plant operates at about 30% plant factor. Let it continue to do so using the furnace oil, even though the cost of FO also may have gone up in recent times. The impact on the national economy and the CEB cash flow would be much less worrisome than the proposed misadventure with LNG.
What is the fate of Mannar Oil and Gas Resource?
Although Eng. Gunasekera is of the view that its proven potential is far too little to attract any investors, he has hedged his bets by a surprising comment on the possibility of this resource being supplementary to FSRU and LNG. Given the dire warnings he has sounded against any attempt to implement the FSRU, perhaps he may have an inkling that the Mannar resource may stand on its own.
However, I would like to take a more optimistic view of the possibility and the need for a successful development agreement (taking due notice of warnings given on this count too due to Sri Lanka’s poor record of international negotiations) for two reasons:
It is now becoming impossible to operate the Lak Vijaya coal power plant due to cost of coal.
We don’t seem to have the courage to look beyond the 70% RE target and therefore should look for a least damaging solution, both economically and environmentally.
Both these objectives are served by successful development of the Mannar gas field with the potential of gaining both more economically and financially as the estimated potential of 9 Trillion Cubic Feet of Gas from the currently explored blocks; this is many times our own potential consumption and will yield a substantial surplus.
The World Scene on Natural Gas
I must justify my claim to be a realist in hoping for an acceptable agreement for this development in spite of my opposition to any form of fossil fuels. The fact remains that it is only now that the CEB has accepted the 70% RE goal. So, we need to look for the least damaging means of meeting the balance 30%. In the world scene, in spite of the agreement that NG is a very potent GHG due to leakages at points of extraction, storage and transport, it remains a highly sought after fuel. While there is a widespread agreement to eventually end the use of coal, in some countries even as early as 2025, there is no such agreement in respect of NG.
Even at the current COP 26 summit dubbed as the Green Washing Festival by Greta Thunberg, the commitment is only to reduce the methane emissions by 30% by year 2030, that too with out several major producers and users of NG including India, Russia and China
So, the demand and use of NG shall remain high and even escalate as replacement of coal in the foreseeable future. The largest increase is also expected to be in the Asian region. Coupled with this is the fact that there is a great gap between the quoted prices in different NG markets such as Henri Hub and the Japan Korea Market as shown in the graphs.
As such, developing our own resource is attractive and very much in centre stage of the high demand area.
So, while Sri Lanka has committed to reach Zero Carbon status by 2050, there is no reason why we should not aim at the least environmentally damaging and potential economically attractive option of opening up this resource as the transition solution.
The Worst Case Scenario?
What if we are not successful in getting an acceptable agreement and have to do without any gas?
This may be a reality considering the discussions going on at COP 26 against funding for any new fossil fuels. Many including me would view this as the best option in the long run.
Sri Lanka has enough and more indigenous RE resources and the 100% RE option is not impossible. The issue would be more of a financial problem than technical with the need for capital to import the necessary capital goods. There is hope generated at COP 26 on this count too. The project is already at the planning or implementation stage and such as the 100 MW solar and Wind Projects up to some 177 MW of major hydro projects would help bridge this gap in addition to the projected wind, biomass and solar potential .
The tantalising potential of doubling the generation capacity of the Victoria project on which feasibility studies have already been done needs urgent consideration.
Conclusion
The bottom line is clear. There are more than enough reasons for dumping the FSRU option before any more ill-considered commitments are made.
The possibility of attracting credible investors to develop the Mannar resource is reported to be very real and imminent. Therefore, a short sighted commitment to implement FSRUs and therefore the import of LNG would be most foolhardy.
There is the need for much more proactive measures to harness our own RE resources, not limiting such actions to mere rhetoric. The only ingredient lacking is the confidence as well as foresight of the energy authorities, blind to the world trends, both technically and commercially.
A time-targeted action plan towards the 70% RE is urgently needed with much greater emphasis on the next few years’ goals and activities. These would be invaluable in making adjustments to the plans for the next stage, say up to 2027. It is most likely that much more challenging targets could be set with the technical advances and the learning during the first stage.
Can we adopt this “Can Do” attitude at least now?
Features
The challenge of being positive about SAARC
It was a few years back that a former President of Sri Lanka took it on himself to pronounce SAARC ‘dead’. Since then there have been other sections of Sri Lankan opinion that have joined the critics of SAARC and taken the solemn stance that SAARC has indeed died what may be called a natural death.
Their fatalism is understandable. SAARC has failed to meet at heads of government or state level for the past several years to take the SAARC process notably forward. Regional cooperation has more or less been only an appealing idea. No substantive concrete projects have taken off to make the idea a hard reality. ‘Inner paralysis’ seems to be SAARC’s lot. Hence the fatalism in these circles.
However, being one of the worst cash-strapped regions of the world and a teemingly populated one with people virtually left to their devices, what choices do the ‘SAARC Eight’ have other than to try their best to band together and continue with their cooperation efforts, however small they may be?
There is no escaping the mounting debt trap for many of these countries and bankrupt Sri Lanka is a glaring example, but ‘throwing in the towel’ and abandoning themselves entirely to the diktats of the strongest economies and their agencies will prove a ‘living death’ for many countries in the SAARC fold.
The gains may be meagre but giving-up on SAARC cooperation in full would prove self-defeating for the organization and South Asia. Right now, the collective intention ought to be to salvage what the region could from the tenuous cooperative efforts. Moreover, such initiatives could go some distance to generate a degree of goodwill among the Eight and help in sustaining a dialogue process.
Given this backdrop it proved ‘a stich in time’ for the Regional Centre for Strategic Studies (RCSS), Colombo, to recently host the SAARC Secretary General Ambassador Md. Golam Sarwar to a round table discussion on the unifying potential of SAARC and its future possibilities, besides other related issue areas.
Held on June 24th and moderated by RCSS Executive Director and former ambassador Ravinatha Aryasinha, the forum brought together a vibrant, wide ranging audience comprising academicians, diplomats, senior public servants, civil society activists and many others. Following the presentation by Ambassador Golam Sarwar titled, ‘Reigniting SAARC: Achievements, Challenges and the Way Ahead’, a lively Q&A followed.
The above forum could be described as an act of lighting the proverbial ‘candle’ rather than ‘cursing the darkness.’ It surely is a ‘darkness’ that could be seen as daunting considering that the region’s pivotal powers, India and Pakistan, are failing to act in a spirit of accord but are engaged in bitter finger-pointing on a number of questions of vital importance to SAARC.
On the other hand, what is the rest of the region doing to bring the above sides together? It is disappointing that to date the rest of SAARC has failed to launch a major diplomatic drive to bring peace between the feuding regional heavyweights. It needs to act without delay and establish its earnestness and this effort would need to prove SAARC’s staying power in the unfolding months and even years.
In assessing SAARC’s seeming failure local opinion in particular has failed to factor in what could be described as weak leadership. Since Sheikh Mujibur Rahman of Bangladesh, the founding father of SAARC, the region has failed to produce a visionary leader who could advance the SAARC cause with charisma and drive.
Among other reasons, weak leadership accounts considerably for the faltering and stuttering status, as it were, of SAARC. Badly needed are leaders who could go the extra mile, think less of narrow national interests and work diligently towards the collective well being of the region but SAARC’s millions of ordinary people have been made to wait in vain for leaders of such stature. Instead, they have been burdened with politicians who seem to be relishing the apparently moribund state of SAARC.
Looking back, it could be said that it was the dynamic leadership factor that led to the launching of the Non-Aligned Movement and for its sustenance for a few decades. True, it could be seen in some quarters that NAM is no more, but as in the case of SAARC, the former too has been unfortunate to be burdened over the years with politicians who lack the vision and drive to unflaggingly advance the fortunes of the South. NAM and SAARC lack the dynamism and vision of leaders of the stature of Jawaharlal Nehru, for example, to give them the required guidance and intellectual depth.
The reasons are complex for there not being among us currently political leaders with the vision and the steadfast commitment to advance the legitimate interests of the South. However, it could be stated with conviction that the majority of Southern leaders have too easily caved in to the demands of the global North and its financial agencies.
These leaders have failed to see, for instance, that the largely market economy oriented Northern governments would not view with favour a centrist economic model that attaches priority to the interests of the dis-empowered publics of the South. This realization ought to have dawned on the current government in Sri Lanka, for instance, some while ago but it has no choice but to abide by IMF dictates since economic survival at present is unthinkable without the latter’s succour.
Accordingly for SAARC this should be the time for some soul-searching. Priority needs to be attached to ending the feuding between India and Pakistan since at present the material fortunes of the region hinge largely on these regional giants giving peaceful relations among them a try. This is no easy challenge to meet but some daring, visionary diplomacy needs to take hold among the rest of SAARC.
There is some sense in SAARC bringing the peoples of the region together through programs that address their best collective interests. A meeting of minds among SAARC nations could enable SAARC and its agencies to build a region-wide people’s movement for progressive political and economic change that could in turn lead to the region’s political leaders sensitizing themselves more to the neglected needs of their publics.
However, the time is ‘now’ for the initiation of these progressive changes and the voice of SAARC well wishers would need to drown out those of their critics.
Features
OPA seminar examines Sri Lanka’s economic recovery, resilience and growth pathways
A seminar, “Sri Lanka’s Economic Crossroads: Navigating Recovery, Resilience and Growth” was recently held by the Organisation of Professional Associations of Sri Lanka (OPA) at the OPA Auditorium, bringing together economists, OPA members, and professionals from diverse fields for an insightful discussion on Sri Lanka’s economic recovery and future growth prospects.
The event was held under the patronage of Jayantha Gallehewa, President of the OPA, and was jointly organised by the National Issues Committee (NIC) and the Seminars, Workshops and Programmes Committee of the OPA. The event reaffirmed the organisation’s commitment to advancing professional excellence, fostering insightful intellectual engagement, facilitating interdisciplinary knowledge exchange and creating a constructive platform for informed dialogue on issues of national importance.
The panel of speakers comprised Dr. Harsha Aturupane, Lead Economist and Programme Leader for Human Development at the World Bank for Sri Lanka and the Maldives; Dr. Achinthya Koswatta, Senior Lecturer in Economics at the Open University of Sri Lanka, and Anushan Kapilan, Lead Economist at Verité Research.
In his welcome address, the President of the OPA emphasised that Sri Lanka was at a critical juncture in its economic recovery journey where sustained reforms, effective implementation, and collective national commitment are essential to achieving long-term stability, resilience and inclusive growth. He noted that the country had experienced one of the most severe economic crises in its history with the economy contracting by 7.8 percent in 2022 and a further 11.5 percent in 2023, resulting in significant economic and social challenges.
Delivering his introductory remarks Bhanu Wijeyaratne, Vice President of the OPA and Chairman of the National Issues Committee, underscored the need to move beyond short-term economic stabilisation towards a comprehensive agenda of structural transformation. He observed that the economic crisis had revealed deep-rooted weaknesses within the economy, including persistent fiscal pressures, rising public debt, foreign exchange limitations, and insufficient diversification of the export base. He stressed that addressing these challenges through strategic reforms, institutional strengthening and long-term economic planning would be essential to establishing a more resilient and competitive economy.
While acknowledging recent positive developments, including improved inflation management, tourism recovery and signs of economic stabilisation, Wijeyaratne stressed the need to advance reforms aimed at strengthening fiscal discipline, enhancing productivity, improving competitiveness, developing human capital and reinforcing governance and institutional effectiveness.
He further highlighted the important role of professionals, businesses, academia and other stakeholders in contributing to evidence-based dialogue and supporting Sri Lanka’s journey towards a resilient, inclusive and sustainable economic future.
Delivering the keynote presentation, Dr. Harsha Aturupane provided a comprehensive assessment of Sri Lanka’s economic prospects within the broader context of global economic transformation. He argued that Sri Lanka functioned as a small open economy whose performance is significantly influenced by developments in the global marketplace. External factors could not be controlled, and the country must strengthen its domestic capacity and resilience to respond effectively to international economic shifts, he noted.
Tracing the evolution of global economic systems, Dr. Aturupane highlighted the transition from ideological divisions between state-controlled and market-oriented economies towards increasingly pragmatic approaches focused on growth, competitiveness and development. He noted that Sri Lanka’s own economic journey reflects a similar evolution, with contemporary policy debates now centred on practical solutions for sustainable economic progress.
The presentation also examined the transformative impact of globalisation. Dr. Aturupane observed that global economic integration had enabled several East Asian economies, including South Korea, Singapore, Taiwan and Hong Kong, to achieve remarkable economic advancement through export-led growth strategies. Sri Lanka similarly benefited from this process through the expansion of its apparel industry and increased integration into global value chains.
Turning to Sri Lanka’s recovery programme, Dr. Aturupane emphasised that the ongoing stabilisation process should be viewed as a national programme supported by the International Monetary Fund rather than solely as an IMF initiative. He observed that strong worker remittances, improved tourism earnings, enhanced government revenue mobilisation and prudent import management have contributed significantly to economic stabilisation.
Despite this progress, he cautioned that rebuilding foreign exchange reserves and meeting future debt obligations remain major challenges. He underscored the need to strengthen export performance, attract investment and generate sustainable foreign exchange earnings to ensure long-term economic resilience.
The discussion also focused on monetary stability, inflation management and exchange-rate policy. Dr. Aturupane stressed that maintaining price stability was fundamental to sustainable growth and household welfare, while sound monetary policy remains essential for preserving economic confidence.
Looking beyond stabilisation, he argued that Sri Lanka must transition towards a broader economic transformation agenda. Sustainable growth, he noted, will depend on expanding productive capacity through investment, technological advancement, innovation, skills development and structural reforms.
Among the key constraints identified was the high cost of energy, which continues to affect competitiveness and investment attractiveness. Dr. Aturupane emphasised the importance of improving efficiency and affordability within the energy sector to enhance Sri Lanka’s business environment.
He further highlighted the social dimensions of the crisis, noting the rise in poverty and economic vulnerability among households. Strengthening social protection systems and ensuring inclusive growth, he argued, must remain central components of the national development agenda.
Another critical challenge identified was Sri Lanka’s demographic transition. With an ageing population, outward migration and evolving labour market dynamics, the country is increasingly confronting labour shortages in several sectors. Dr. Aturupane suggested that greater automation, increased labour-force participation and strategic workforce planning would be necessary to address these emerging realities.
Concluding his presentation, he emphasised the need to improve governance, strengthen institutions, enhance competitiveness and create an enabling environment for private sector investment. Sri Lanka’s future success, he noted, will depend on its ability to move decisively beyond crisis management towards a development model founded on resilience, innovation, productivity and inclusive growth.
Dr. Achinthya Koswatta reiterated the importance of policy consistency and predictability in fostering investment and industrial development. She observed that frequent policy changes create uncertainty and discourage long-term investment decisions, whereas stable and coherent policy frameworks build confidence and support sustainable economic transformation.
Meanwhile, Anushan Kapilan highlighted the substantial progress achieved in restoring macroeconomic stability following the recent crisis. He noted significant improvements in fiscal performance, including increased government revenue, reduced reliance on debt financing and a historically low fiscal deficit.
He further observed that public debt levels are declining faster than anticipated, economic growth has exceeded expectations and inflation has been brought under control more rapidly than forecast. Nevertheless, he cautioned that the recovery remains uneven, particularly within the industrial sector and that many households have yet to experience a meaningful improvement in living standards.
The seminar was expertly coordinated by Eng. Chamil Edirimuni, Vice President of the OPA and Chairman of the Seminars, Workshops and Programmes Committee, while the technical moderation and interactive discussion session were facilitated by Bhanu Wijeyaratne, Vice President of the OPA and Chairman of the National Issues Committee.
The event was attended by Tisara De Silva, President-Elect of the OPA, Eng. Ravi Rupasinghe, General Secretary, Past Presidents, members of the Executive Council, representatives of the General Forum and professionals representing a wide range of disciplines.
The seminar concluded with a vibrant exchange of ideas and perspectives, reaffirming the importance of evidence-based policy dialogue, institutional collaboration and collective national commitment in advancing Sri Lanka’s economic recovery, resilience and sustainable growth.
Features
Her roots run deep in Sri Lanka
Yes, for UK-based presenter and artiste Samantha Kay, home is where the heart – and the roots – are. And her roots run deep in Sri Lanka.
In an exclusive interview with The Island, Samantha says “I’m proud to be Sri Lankan. My mum is from Kandy and my dad is from Colombo, so Sri Lanka has always held a very special place in my heart.
“Whenever I visit Sri Lanka, I love spending time on the beautiful south coast, especially Hikkaduwa and Mirissa. It’s somewhere I always feel connected to my roots and completely at peace.”
Now living in Bournemouth, on the south coast of England, where, she says, she is lucky to be close to some of the UK’s most beautiful beaches, including the iconic Sandbanks, Samantha has built a career that refuses to fit into one box.
She is a radio presenter, podcast host, singer-songwriter, personal trainer and life coach.
“I genuinely love the variety because every role allows me to connect with people and, hopefully, make a positive difference in someone’s day.”
Of course, music has taken her far.
One of her proudest achievements, she says, was releasing a song with 90s music icon Angie Brown, which reached No. 9 in the UK Club Charts.
She also reached the final stages of The X Factor and performed at Wembley Stadium in front of thousands.
Beyond music, Samantha competed in bikini bodybuilding across the UK, winning several titles. “It taught me discipline, resilience and self-belief,” she recalls.
Today, her focus is on radio, podcasting and coaching women. Her podcast encourages people to live life on their own terms rather than feeling pressured to follow society’s expectations.
Says Samantha: “Whether someone is single, changing careers, travelling solo or simply trying to find their purpose, I want them to know that it’s never too late to create a life that feels authentic. If you’ve ever felt like you don’t fit into the box, maybe you were never meant to.”
Samantha Kay also spent a year in Dubai, performing at five-star hotels, including FIVE, and coaching at the iconic outdoor gym on Palm Jumeirah.
“I taught strength and conditioning classes, and hosted wellness retreats, combining my passion for music, health and inspiring others.”
However, with family matters calling her back to the UK, she made the choice to return. “Family comes first,” she says.
Looking ahead, Samantha plans to grow her radio and podcast work, release more music, and expand her wellness retreats.
“My biggest passion is helping people, especially women, build confidence and believe in themselves,” she says.
“Wherever my career takes me, I hope to continue inspiring others to live with courage, kindness and authenticity, while never forgetting my Sri Lankan roots.”
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