Sri Lanka says IMF has approved $2.9 billion bailout for the cash-strapped economy

"We are pleased that the IMF Executive Board approved our program," President Ranil Wickremesinghe said.

The International Monetary Fund's executive board has approved a $2.9 billion bailout for Sri Lanka, President Ranil Wickremesinghe's office said on Monday.

Sri Lankan president Ranil Wickremesinghe. (AP)

"The IMF Executive Board approved Sri Lanka’s program under the Extended Fund Facility (EFF) that will enable Sri Lanka to access up to $7 billion in funding," the president's office said.

"We are pleased that the IMF Executive Board approved our program, enabling Sri Lanka to access up to $7.0 billion in funding from the IMF and International financial institutions," he said.