Sri Lanka approves controversial foreign debt deal
Sri Lanka’s new government has approved a controversial restructure of $14.7 billion in foreign commercial credit tentatively agreed by its predecessor, the finance ministry said on Saturday. Former leader Ranil Wickremesinghe announced a deal with international sovereign bondholders and the China Development Bank just two days before he lost presidential elections last month. The new leftist President Anura Kumara Dissanayake had called for better terms, but after two days of talks with an IMF delegation in Colombo, his government said it would honour his predecessor’s deal. “Sri Lankan authorities confirm their endorsement of … the agreement in principle terms as announced on Sept 19,” the finance ministry said in a statement.