Features
RECOMMENDATIONS FOR SRI LANKA: DEBT RESTRUCTURING AND BRIDGE FINANCING FOR HUMANITARIAN PURPOSES

Grabbing the bull by its horns: Pathfinder route for facing critical economic challenges
Study Group for Tripartite Cooperation (Japan-India-Sri Lanka)
DEBT RESTRUCTURING AND BRIDGE FINANCING FOR HUMANITARIAN PURPOSES
We view that Sri Lanka is at a critical juncture whether it can remain as a potentially growing country with the trust of international community, or otherwise.
Sri Lanka’s foreign exchange reserves are at dangerously low levels ($1.6 billion or less than one month of imports), especially given the $6.9 billion in debt service payments coming due in 20221. The acute shortage of foreign exchange is due to the COVID-19 pandemic, causing a sharp decline in tourism earnings, and reduced overseas worker’s remittances. It has also disrupted Sri Lanka’s own efforts to improve the debt sustainability.
The International Sovereign Bond payment ($500 million) on 18th January 2022 was made possible only through the very timely SWAP ($400 million) from the Reserve Bank of India and the deferral of a payment ($500 million) to India under the Asian Clearing Union (ACU). Both of these are short-term interventions. The former is a three-month facility, which can be renewed twice (i. e. nine months) before the requirement of at least a staff-level agreement with the IMF. The ACU payment has been deferred for two months (now due in March 2022). Without this much needed support from India, Sri Lanka would have defaulted on the recent ISB payment and triggered an economic and humanitarian crisis.
Meanwhile, the low level of reserves is leading to shortages of imports that are causing, on top of the COVID-19 pandemic, additional hardship to everyday Sri Lankans. People stand in long lines for cooking gas; powdered milk is unavailable; power cuts are frequent; medicines are becoming difficult to find, while the cost of staple food items are sky rocketing.
The real problem is that Sri Lanka’s external debt is unsustainable. The revenue that the government will earn, even under the most optimistic scenarios, will be insufficient to cover public expenditures and meet debt service payments over the coming years. Known external debt repayments over the next five years amount to $26 billion, or about $5 billion a year, which is over 80 percent of government revenue in 2020. Market participants recognize this. When in 2019 Sri Lanka cut taxes and experienced a drop in tax revenues, the three major rating agencies downgraded the country to C, which is near-default level. In January of this year, when the Governor of the Central Bank announced that Sri Lanka had secured the funds to meet the $500 million bond payment, S&P downgraded Sri Lanka further.
In this setting, Sri Lanka should avoid a hard default at all costs. Such abrupt actions, when the country stops paying its creditors, lead to a collapse of GDP, hyperinflation, and severe depreciation of the currency. At the same time, Sri Lanka should not continue meeting its debt-service payments in full—and starving its people of essential imports–when everybody, including market participants, knows that the country cannot sustain this strategy.
The only choice is for Sri Lanka to undertake a managed debt restructuring, whereby the country reaches an agreement with its creditors to reduce the overall debt to a sustainable level. The process begins with the appointment of financial and legal advisors. The restructuring is greatly facilitated by approaching the IMF for support on two items. First, the IMF can undertake the analysis to determine the sustainable level of debt. This analysis serves as an anchor for the negotiations with the creditors. Secondly, if Sri Lanka has a program with the IMF, that increases investors’ confidence that the new debt level is sustainable. It could also lead to additional resources from the IMF, the World Bank, Asian Development Bank and other partners.
These negotiations are likely to take about six months. In the meantime, there is urgent need for bridging finance to meet the severe shortfall in USD liquidity over this period. Failure to mobilise this bridging finance will lead to severe shortages of food, fuel and pharmaceuticals, causing a great deal of hardship and possibly social unrest, pushing individuals to leave the country through legal and illegal channels.
The table below sets out the minimum foreign exchange needs to finance debt service payments and essential imports for 2022.
With the initiation of debt restructuring negotiations, the debt servicing would be suspended, so the requirements would be $3.5 billion per semester. There is a possibility that Sri Lanka will receive a $1 billion SWAP from a national government and an additional $0.5 billion of usable reserves from a private entity but these have not been confirmed. In the absence of these inflows, there is a financing gap of $3.5 billion over the next six months, which should be filled to avert a humanitarian disaster. While the above is admittedly an estimate, the governments of Sri Lanka, Japan and India could agree on a figure that can be reviewed on a quarterly basis.
The government of Sri Lanka, along with Japan and India as major development partners, can collaborate on a program of debt restructuring and bridge financing in the following way:
1. The Government of Sri Lanka initiate a managed debt restructuring by appointing the financial and legal advisors. The Government approaches the IMF for assistance with the debt restructuring.
2. Following the initiation of the debt restructuring, the government of Sri Lanka requests the Governments of Japan and India to provide impetus to the restructuring exercise and develop programs for providing bridge financing to Sri Lanka during the negotiations. The bridging finance could take the form of humanitarian assistance through lines of credit to support essential imports (see Table). These will be one-time financial transfers, which will end with the conclusion of the debt restructuring negotiations.
3. Japan and India will encourage the international community to apply to Sri Lanka’s case the principles of G-20 Common Framework as well as the Debt Service Suspension Initiative (DSSI) for lower income countries.
This collaboration would give the Government of Sri Lanka the assurance that, when they embark on a debt restructuring exercise, the immediate needs for essential imports will be met. It will give the Governments of Japan and India the assurance that the bridge financing will be needed during the transition only, as Sri Lanka, just like other countries that have undergone the same process, will likely be able to meet its needs going forward through additional financing and lower debt service payments.
Study Group for Tripartite Cooperation (Japan-India-Sri Lanka)
Amb. Prof. Nobuhito Hobo
Professor, National Graduate Institute for Policy Studies (GRIPS) & Executive adviser, GRIPS – ALLIANCE – Japan
Prof. Shinji Asanuma
Former Professor, School of International and public Policy, Hitotsubashi University – Japan
Prof. Hirohisa Kohama
Professor Emeritus of Economics, Faculty of International Relations, University of Shizuoka – Japan
Amb. Dr. Mohan Kumar
Chairman, Research and Information System for Developing Countries (RIS) – India
Mr. Bernard Goonetilleke
Chairman, The Pathfinder Foundation – Sri Lanka
Dr. Indrajit Coomaraswamy
Distinguished Fellow, The Pathfinder Foundation – Sri Lanka
Dr. Shanta Devarajan
Professor, The Practice of international development at Georgetown University’s Edmund A. Walsh School of Foreign Service – USA
Features
Religious extremism set to gain from rising Israel-Iran hostilities

Many of the international pronouncements on the current dangerously escalating Israel-Iran hostilities could be seen as lacking in adequate balance and comprehensiveness. The majority of these reactions could be said to be failing in addressing the aspects of the conflict that matter most.
For example, there is the recent UN General Assembly resolution on the crisis which calls for an ‘immediate, unconditional and lasting ceasefire in the Gaza’ and which goes on to urge ‘Member States to take necessary steps to ensure Israel complies with its international legal obligations.’ An immediate and durable ceasefire is indeed the number one requirement in the Middle East today but could it be ‘unconditional’? Could it ignore the principal requirement of Israel’s security? These posers need to be addressed as well.
Besides, it is not only Israel that should be compelled to meet its ‘international legal obligations.’ All the states and actors that feature in the conflict need to be alerted to their ‘international legal obligations’. While it goes without saying that Israel must meet its international legal obligations fully, the same goes for Iran and all other Middle Eastern countries that enjoy UN membership and who are currently at odds with Israel. For instance, Israel is a UN member state that enjoys equal sovereignty with other states within the UN fold. No such state could seek to ‘bomb Israel out of existence’ for example.
As a significant ‘aside’ it needs to be mentioned that we in Sri Lanka should consider it appropriate to speak the truth in these matters rather than dabble in what is ‘politically correct’. It has been seen as ‘politically correct’ for Sri Lankan governments in particular to take up the cause of only the Palestinians over the decades without considering the legitimate needs of the Israelis. However, a lasting solution to the Middle East imbroglio is impossible to arrive at without taking into account the legitimate requirements of both sides to the conflict.
The G7, meanwhile, is right in stating that ‘Israel has a right to defend itself’, besides ‘reiterating our support for the security of Israel’ but it urges only ‘a de-escalation’ of hostilities and does not call for a ceasefire, which is of prime importance.
It is only an enduring ceasefire that could lay the basis for a cessation of hostilities which could in turn pave the way for the provision of UN humanitarian assistance to the people of the Gaza uninterruptedly for the foreseeable future. There is no getting away from the need for a durable downing of arms which could engender the environment required for negotiations between the warring parties.
Meanwhile, some 22 Muslim majority countries have ‘warned that continued escalation threatens to ignite a broader regional conflict that could destabilize the Middle East’ and called ‘for a return to negotiations as the only solution regarding Iran’s nuclear program.’ This statement addresses some important issues in the crisis but one hopes that the pronouncement went on to call for negotiations that would take up the root causes for the conflict as well and pointed to ways that could address them. For instance, there is no getting away from the ‘Two State Solution’ that envisages peaceful coexistence between the principal warring parties.
The ‘Two State Solution’ has been discredited by sections of the world community but it outlines the most sensible solution to the conflict. As matters stand, the current escalating hostilities, if left unchecked, could not only lead to a wider regional war of attrition but bring about the annihilation of entire populations. There is no alternative to comprehensive negotiations that take on the issues head on.
Besides, all who matter in the current discourse on the crisis need to alert themselves to the dangers of appealing to the religious identities of communities and social groups. When such appeals are made religious passions are stirred, which in turn activate extremist religious outfits that operate outside the bounds of the law and prove difficult to rein-in. This was essentially how ‘9/11’ came about. Accordingly, speaking with a sense of responsibility proves crucial.
In fact, it could be argued that a continuation of the present hostilities would only benefit the above outfits with a destructive mindset. Therefore, comprehensive and constructive negotiations are of the first importance.
The above conditions should ideally be observed by both parties to the conflict. Israel, no less than the Islamic and Arab world, needs to adhere to them. Israeli Prime Minister Netanyahu has no choice but to say ‘No’ to extremists within his cabinet and to ‘show them the door’, inasmuch as hot-headed extremists in the Islamic and Arab world need to be opposed and alienated by the relevant governments.
Meanwhile, the US is on a duplicitous course in the Middle East. Whereas it has no choice but to rein-in Israel and convince it of the need to negotiate an end to the conflict, it is choosing to turn a blind eye to Israel’s military excesses and other irregularities that are blighting the Gazans and the ordinary people of Iran. It ought to be plain to the Trump administration that it is promoting a barbaric war of attrition by continuing to provide Israel with the most lethal weaponry. Currently, it is anybody’s guess as to what the US policy on the Middle East is.
The Islamic and Arab world, on the other hand, should come to understand the imperatives for a defusing of tensions in the region. Decades of conflict and war ought to have made it clear that the suffering of the populations concerned would not draw to a close minus a negotiated peace that ensures the wellbeing of all sections concerned.
As pointed out, the security of Israel needs to be guaranteed by those quarters opposing it. This will require the adoption of a conciliatory attitude towards Israel by state and non-state actors who have thus far been hostile towards it. There needs to be a steady build-up of goodwill on both sides of the divide. If this is fully realized by the Arab world a negotiated solution will be a realistic proposition in the Middle East.
Features
She deserves the crown

We had no luck coming our way at the Miss World 2025 contest – not even our immediate neighbour, India – but I’m glad that Miss Thailand was crowned Miss World 2025 as Thailand happens to be my second home … been to Amazing Thailand many times, courtesy of the Tourism Authority of Thailand.
In fact, even before the Miss World 2025 grand finale, which was held at the beautiful venue of the HITEX Exhibition Centre, in Hyderabad, Telangana, India, my colleagues at office all predicted that Miss Thailand, Opal Suchata Chuangsri, would emerge as the winner.
Yes, indeed, Miss Thailand not only won the hearts of millions but also became the first ever Thai to claim this much sought-after title.
Prior to winning the title of Miss World 2025, Opal Suchata was Thailand’s representative at Miss Universe 2024 and took home the third runner-up title.
Her Miss Universe crown, unfortunately, was subsequently forfeited, due to a contract breach, but she did not let that demotivate her, though, and went on to compete and win the title of Miss World Thailand 2025.
Coming from a family that was in the hospitality industry, her upbringing, in this kind of environment, made her aware of her culture and helped her with her communication skills at a very young age. They say she is very fluent in Thai, English, and Chinese.
Obviously, her achievements at the Miss World 2025 contest is going to bring the 22-year-old beauty immense happiness but I couldn’t believe that this lovely girl, at 16, had surgery to remove a benign breast lump, and that made her launch the ‘Opal For Her’ campaign to promote breast health awareness and early detection of breast cancer, which also became the topic of her ‘Beauty with Purpose’ at the Miss World 2025 contest.
Opal Suchata intends to leverage her Miss World title to advocate for other women’s health issues, as well, and sponsor a number of charitable causes, specifically in women’s health.
Her victory, she says, is not just a personal achievement but a reflection of the dreams and aspirations of young girls around the world who want to be seen, heard, and create change.
What’s more, with interests in psychology and anthropology, Opal Suchata aspires to become an ambassador for Thailand, aiming to represent her country on international platforms and contribute to peace-building efforts.
She believes that regardless of age or title, everyone has a role to play in inspiring others and making a positive impact.
And, what’s more, beyond pageantry, Opal Suchata is an animal lover, caring for 16 cats and five dogs, making her a certified “fur mom.”
She also possesses a special musical ability—she can play the ukulele backwards.
Opal Suchata is already a star with many expressing admiration for her grace, leadership, and passion for making a difference in the world.
And there is also a possibility of this head-turner, from Thailand, entering the Bollywood film industry, after completing her reign as Miss World, as she has also expressed interest in this field.
She says she would love the opportunity and praised the Indian film indstry.
She akso shared her positive experience during her visit to India and her appreciation for the Telangana government.
Congratulations Opal Suchata Chuangsri from Amazing Thailand. You certainly deserve the title Miss World 2025.
What is important is that the Miss World event is among the four globally recognised beauty pageants … yes, the four major international beauty pageants for woment. The other three are Miss Universe, Miss Earth and Miss International.
Unfortunately, in our scene, you get beauty pageants popping up like mushrooms and, I would say, most of them are a waste of money and time for the participants.
Features
Wonders of Coconut Oil…

This week I thought of working on some beauty tips, using coconut oil, which is freely available, and quite affordable, as well.
Let’s start with Coconut Oil as a Moisturiser…
First, make sure your skin is clean and dry before applying the coconut oil. This will allow the oil to penetrate the skin more effectively.
Next, take a small amount of coconut oil and warm it up in your hands by rubbing them together. This will help to melt the oil and make it easier to apply.
Gently massage the oil onto your face and body, focusing on dry areas or areas that need extra hydration.
Allow the oil to absorb into your skin for a few minutes before getting dressed.
Start with a small amount and add more if needed.
* Acne and Blemishes:
Apply a small amount to the affected area and gently massage it in. Leave it on overnight and rinse off in the morning. Remember to patch test before applying it to your entire face to ensure you don’t have any adverse reactions.
* Skin Irritations:
If you’re dealing with skin irritations, coconut oil may be just what you need to find relief. Coconut oil has natural anti-inflammatory properties that can help soothe and calm irritated skin.
Simply apply a thin layer of coconut oil to the affected area and gently massage it in. You can repeat this process as needed throughout the day to keep your skin calm and comfortable.
* Makeup Remover:
To use coconut oil as a makeup remover, simply apply a small amount onto a cotton pad or your fingertips and gently massage it onto your face, in circular motions. The oil will break down the makeup, including waterproof mascara and long-wearing foundation, making it easy to wipe away.
Not only does coconut oil remove makeup, but it also nourishes and hydrates the skin, leaving it feeling soft and smooth. Plus, its antibacterial properties can help prevent breakouts and soothe any existing skin irritations, so give coconut oil a try and experience its natural makeup removing abilities, and also say goodbye to acne and blemishes!
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