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Call to undefined function simplexml_load_string()

Call to undefined function simplexml_load_string()

I am getting this error on all the sites located on our server. Everything was working correctly until today and all of sudden this error poped up. I have checked Simplexml and it is already installed on the server. Here is the error:

 

Fatal error: Call to undefined function simplexml_load_string() in .../lib/Varien/Simplexml/Config.php on line 510