Police have extended a curfew in central Sri Lanka, as the International Monetary Fund asked the government in Colombo to "restructure" its mounting foreign debt and anti-government protests escalated across the island.
The IMF has requested the financial restructuring so a bailout programme can be finalised.
It came a day after the killing of an anti-government demonstrator triggered international condemnation.
The government promised an investigation into allegations that police had used excessive force to disperse those protesting over rising fuel prices and demanding President Gotabaya Rajapaksa's resignation over the worsening economic crisis.
Sri Lanka is in the grip of its worst downturn since independence in 1948, with regular power cuts, a severe shortage of fuel and other goods and record inflation causing widespread misery.
"I have already initiated an inquiry into the conduct of officers at Rambukkana," police chief Chandana Wickramaratne said as he ordered an indefinite curfew in the area.
The crowd was about to set a diesel tanker alight when officers opened fire to disperse protesters in Rambukkana, 95 kilometres east of the capital, police said in an earlier statement.
In the first fatal clash since anti-government protests broke out this month, at least 29 people including 11 policemen were wounded, officials said.
International concerns
Envoys in Colombo, including those from the US, Britain and Canada, expressed concern over the shootings and called for restraint from all sides as Sri Lanka opens bailout talks with the IMF in Washington.
"A full, transparent investigation is essential and the people's right to peaceful protest must be upheld," US ambassador Julie Chung said.
The British High Commissioner Sarah Hulton said: "I condemn violence in all forms and call for restraint."
And her Canadian counterpart David McKinnon said "those instigating violence must be accountable".
Within hours, police fired tear gas to break up another protest in the south of the island but there were no immediate reports of casualties, officials and residents said.
Police moved to disperse people occupying a main road and holding up traffic in Matara, 160km south of Colombo, residents said.
Protests spread across Sri Lanka against Tuesday's sharp increase in fuel prices and the shortage of diesel and petrol as the government seeks up to $4 billion from the IMF to overcome its balance-of-payments crisis and boost depleted reserves.
Trade unions have called a general strike on Wednesday to protest against the rising living costs.
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Demonstrators in Sri Lanka gather outside the Presidential Secretariat in Colombo as the country faces shortages in food, fuel and medicines after defaulting on its $51 billion debt. EPA -
Demonstrators camp in an area nicknamed the Gota-Go Village, close to the Presidential Secretariat in Colombo, Sri Lanka. Reuters -
Residents of Gota-Go Village in Colombo use their phones to organise their protest against President Gotabaya Rajapaksa's management of the economy. Reuters -
A demonstrator at Gota-Go Village in Colombo rests in one of the protest camp's many tents. Reuters -
Water bottles are shared among protesters inside Gota-Go Village in Colombo, Sri Lanka. Reuters -
Gota-Go Village in Colombo is a focus of opposition to Sri Lanka's President Gotabaya Rajapaksa's leadership. Reuters -
The demonstrators who gather at Gota-Go Village near the Presidential Secretariat in Colombo, Sri Lanka, fear the country's medical service is near collapse. Reuters -
Demonstrators distribute essentials such as water at Gota-Go Village in Colombo, Sri Lanka. Reuters -
Protesters in Colombo after President Gotabaya Rajapaksa lost his parliamentary majority. EPA -
Power cuts and fuel shortages across Sri Lanka bring protesters to the doorstep of President Gotabaya Rajapaksa in Colombo. AFP -
Protesters in Sri Lanka have made the centre of Colombo, the capital, the focus of their efforts to unseat President Gotabaya Rajapaksa. AFP -
People shout slogans during the protests. Reuters -
A Buddhist monk prepares a placard at a demonstration against the economic crisis. AFP -
Religious and secular groups unite in protest. AFP
Public transport fares are set to rise by 35 per cent on Wednesday after the price of diesel rose by nearly 65 per cent the day before. Bread has gone up nearly 30 per cent.
In Colombo, a large crowd has been camped outside the president's seafront office since April 9, demanding the leader step down.
Mr Rajapaksa acknowledged public anger over the ruling family's mismanagement on Monday, after appointing a new Cabinet to try to assuage fury over the crisis.
Sri Lanka's economic meltdown came after the coronavirus pandemic torpedoed vital revenue from tourism and remittances and the government last week announced a default on huge foreign debt.
IMF talks
Sri Lanka opened talks with the IMF in Washington this week after announcing its first default on external borrowings.
"When the IMF determines that a country's debt is not sustainable, the country needs to take steps to restore debt sustainability prior to IMF lending," the fund's country director Masahiro Nozaki said.
"Approval of an IMF-supported programme for Sri Lanka would require adequate assurances that debt sustainability will be restored."
The IMF said talks with Sri Lanka were still at an "early stage," but it was "very concerned" about the economic situation and the hardships suffered by people, especially the poor and vulnerable.
The IMF had previously warned Sri Lanka that its estimated foreign debt of $51bn was unsustainable.
Colombo's existing debt also means the country cannot apply for emergency financing, the fund said.
