The Ministry of Finance said in a statement, that Sri Lanka has requested foreign-exchange liquidity support for state banks from the lender.
Hit hard by the pandemic, rising oil prices and tax cuts by the government, Sri Lanka is experiencing a major economic crisis, with usable foreign reserves down to $50 million.
Shortages of essential commodities, fuel and medicines have brought thousands onto the streets in over a month of mostly peaceful protests.
Meanwhile, the government declared a second state of emergency in five weeks on Friday.
China has meanwhile extended Sri Lanka a $1.3 billion syndicated loan and a $1.5 billion yuan-denominated swap to boost the reserves.
The two countries are in talks for a $1.5 billion credit line and a fresh syndicated loan of up to $1 billion.
(Except for the headline, this story, originally published by newsradio.lk has not been edited by SLM staff)