COLOMBO, Nov 27, 2024 (BSS/AFP) - Sri Lanka's central bank cut its
benchmark interest rate Wednesday, after the government agreed to a debt
restructure deal with international bond holders.

The Central Bank of Sri Lanka said it was moving to a single policy rate set
at 8.0 percent, an "effective reduction" of around 50 basis points.

The move came a day after the government vowed to honour a deal secured by
its predecessor to restructure $12.55 billion in international sovereign
bonds, a key condition of an International Monetary Fund bailout.

The Fund welcomed Sri Lanka completing its external debt restructure and
urged international bond holders and other creditors to accept the terms
offered by Colombo.

Sri Lanka secured a $2.9-billion bailout from the IMF in 2023 after doubling
taxes, withdrawing energy subsidies and raising prices of essentials to shore
up state revenue.

A majority of private creditors of the South Asian nation agreed two months
ago to a 27 percent haircut on their loans, but it needed the approval of the
new administration.