The United States on Friday lifted most of the economic sanctions it had in place against Libya before the fall of former ruler Muammar Gaddafi.

After careful consultation with the new Libyan government, the United States rolled back most U.S. sanctions on the government of Libya to keep our commitment to the Libyan people, the White House said in a statement.

Gaddafi's 42-year rule collapsed when his forces fled Tripoli in August and the last of the fighting in Libya ended in October when he was captured and killed by rebels.

The U.S. action followed by the lifting of sanctions by the U.N. Security Council on Libya's central banks and a subsidiary.

Today's action unfreezes all government and central bank funds within U.S. jurisdiction, with limited exceptions, the White House said, adding that assets in the United States of Gaddafi family and his former aides remain frozen.

(Reporting By Caren Bohan; Editing by Sandra Maler)