Rajapaksa said the decision to impose a state of emergency was taken in the “interest of public safety, the protection of public order and the maintenance of supplies and services necessary for the life of the community”. The island nation of 22 million people is struggling with an ongoing economic crisis that has forced people to queue for basic goods and face long power outages. The statement follows violent demonstrations Thursday night, which saw angry protesters throw bricks and set fire to a bus outside the president’s private residence in the capital, Colombo, Reuters reported. The police used tear gas and water cannons to dissolve the demonstrations, according to Reuters, as police officers arrested dozens of people and imposed a traffic ban on Colombo at night, said CD Wickramaratne police inspector in a statement. Reuters reported that an official said at least two dozen police officers had been injured in the clashes, but declined to comment on the number of protesters injured. President Rajapaksa’s office issued a statement on Friday claiming that “organized extremists” holding iron rods, batons and poles had incited protesters to “riot” outside his home. Later Friday, Sri Lankan Community Police Minister Dilum Amunugama called the protest a terrorist act. “I think the wrong terminology was used in the official statement. They were not extremists, they were terrorists,” he told reporters. “The attitude of the government is that if terrorism prevails, it must be defeated.” The Covid-19 pandemic has hit Sri Lanka’s economy hard in the last two years, including the main tourism sector. Tourism Minister Prasana Ranatunga also warned that the protests would further damage the economic prospects, Reuters reported. “The main issue facing Sri Lanka is the lack of foreign exchange and protests like this will hurt tourism and have economic consequences,” Ranatunge said.

What is happening in Sri Lanka

Sri Lanka is battling a currency crisis that has forced the currency to depreciate and has affected the supply of basic goods such as food, medicine and fuel. For weeks, residents have been queuing for hours for basic supplies and experiencing power outages of more than 10 hours. Soldiers are stationed at gas stations to calm customers, who stand in line for hours in the heat to fill their tanks. Foreign exchange reserves have fallen 70% in the last two years to $ 2.31 billion, Reuters reported. Sri Lanka is due to pay off about $ 4 billion in debt the rest of this year, including a $ 1 billion international government bond maturing in July. Protesters have been protesting peacefully for weeks, with some calling for the president to step down, but Thursday’s protests signal an escalation of the crisis. Hanaa Singer-Hamdy, the UN Resident Coordinator in Sri Lanka, called on all teams to show restraint. “We are following developments and are concerned about reports of violence in Sri Lanka,” he said in a tweet. Journalist Rukshana Rizwie reported from Colombo, Sri Lanka. CNN’s Alex Stambaugh and Sophie Jeong reported from Hong Kong. Additional report by Reuters.