Sri Lanka has approved a new law backed by the International Monetary Fund (IMF) allowing the state to seize any proceeds from criminal activities, a cabinet spokesperson said on Friday. The new law was proposed as part of efforts under the IMF programme to improve governance, Transport Minister Bandula Gunawardana said at a cabinet briefing. The law is part of conditions Sri Lanka has to fulfill to take forward a $2.9 billion program with the IMF after its economy crumpled under the worst financial crisis in decades, caused by a severe fall in foreign exchange reserves.