COLOMBO — Protesters in Sri Lanka have burned down homes belonging to 38 politicians as the crisis-hit country plunged further into chaos, with the government ordering troops to "shoot on sight".

Police in the island nation said Tuesday in addition to the destroyed homes, 75 have been damaged, as angry Sri Lankans continue to defy a nation-wide curfew to protest against what they say is the government's mishandling of the country's worst economic crisis since 1948.

A mob torched a luxury holiday resort owned by the son of the former Prime Minister, Mahinda Rajapaksa.

The Ministry of Defense on Tuesday ordered troops to shoot anyone found damaging state property or assaulting officials, after violence left at least eight people dead since Monday, although it is unclear if all of the deaths were directly related to the protests. More than 200 people have been injured in the violence.

The nation of 22 million is grappling with a devastating economic crisis, with prices of everyday goods soaring and there have been widespread electricity shortages for weeks. Since March, thousands of anti-government protesters have taken to the streets, demanding the government to resign.

The military had to rescue the country's outgoing Prime Minister Mahinda Rajapaksa in a pre-dawn operation on Tuesday, hours after he resigned following clashes between pro and anti-government protesters. The military were called after protesters twice tried to breach the prime minister's 'Temple Trees' private residence compound overnight, a senior security source told CNN.

His resignation came after live television footage on Monday showed government supporters, armed with sticks, beating protesters at several locations across the capital, and tearing down and burning their tents. Dozens of homes were torched across the country amid the violence, according to witnesses CNN spoke to.

Armed troops were deployed to disperse the protesters, according to CNN's team on the ground, while video footage showed police firing tear gas and water cannons.

A nationwide curfew has been imposed until Thursday.

However, it remains unclear if the curfew and the prime minister's resignation will be enough to keep a lid on the increasingly volatile situation in the country.

Many protesters say their ultimate aim is to force President Gotabaya Rajapaksa -- the prime minister's brother -- to step down, something he has so far shown no sign of doing.

The President on Tuesday urged citizens to "remain calm and stop the violence and acts of revenge against citizens, irrespective of political affiliations."

"All efforts will be made to restore political stability through consensus, within the constitutional mandate and to resolve economic crisis," the President tweeted.

In a statement Tuesday, the European Union and its 27 Member States condemned the "recent vicious attack against peaceful protesters" and called on authorities to investigate.

"The EU deplores the loss of life, including of a Member of Parliament, and the high number of injured people," the statement said. "The EU recalls the importance to safeguard the democratic rights of all citizens, and to focus on solutions that will address the significant challenges currently faced by the Sri Lankans."

Sri Lanka's neighbor, India, has also weighed in.

"As a close neighbor of Sri Lanka, with historical ties, India is fully supportive of its democracy, stability and economic recovery," a spokesperson from the Ministry of External Affairs said Tuesday.

"In keeping with our Neighborhood First policy, India has extended this year alone support worth over $3.5 billion to the people of Sri Lanka for helping them overcome their current difficulties. India will always be guided by the best interests of the people of Sri Lanka expressed through democratic processes."

The political stalemate comes as Sri Lanka attempts to iron out a bailout package with the International Monetary Fund (IMF) - the $81bn economy is near bankruptcy.

It has suspended its foreign debt payments, largely because of loans from China that paid for massive infrastructure projects.

While the pandemic shrunk Sri Lanka's earnings and foreign exchange reserves, experts say problems have been exacerbated by populist tax cuts in 2019 and a disastrous ban on chemical fertilisers in 2021 that hit crop productivity.

Protesters gathered in front of Trincomalee Naval Base in the northeast on Tuesday amid unconfirmed reports that Mahinda Rajapaksa had fled there with his family after escaping from his Colombo residence.

There have also been rumors that he and others in the family fled to India, which the Indian High Commission in Sri Lanka has denied. — Agencies