Sri Lanka cuts lending rates after debt deal

COLOMBO, Nov 27 (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 per cent, 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.