The International Monetary Fund is to lend nearly 3 billion dollars to Sri Lanka to support the recovery of the South Asian nation's devastated economy.

Sri Lanka is struggling with a weak national currency and high inflation. It plunged into an economic crisis partly due to its foreign-exchange reserves drying up.

The IMF said on Monday that its Board approved a four-year loan program through its Extended Fund Facility.

The approval followed commitments from major creditors like China, Japan and India to assist with Sri Lanka's debt restructuring, including modifying repayment terms.

That was the condition set by the IMF when the international lender reached a "staff-level agreement" on a bailout with Sri Lanka last September.
Sri Lanka's President, Ranil Wickremesinghe issued a statement welcoming the IMF's financial support.

He said the country would work to get the economy back on track for the long term through careful fiscal management and large-scale reform.