The credit line, part of about US$4 billion in emergency assistance extended by India during the peak of Sri Lanka's financial crisis early last year, was scheduled to end in March.

Economic mismanagement coupled with the impact of the pandemic left Sri Lanka severely short of dollars for essential imports, tipping the country into its worst financial crisis in seven decades.

Sri Lanka is facing its worst economic crisis in more than seven decades and a shortage of dollars has disrupted imports of essentials.

President Ranil Wickremesinghe is facing a public backlash over steep tax hikes and spending cuts imposed to secure a sorely needed International Monetary Fund bailout.

Anger towards President Ranil Wickremesinghe is growing as his government slashes spending and hikes taxes to secure an IMF bailout after more than a year of economic and political upheaval.

The power price increase is the latest measure to clinch a loan to tackle a crisis that evolved from the confluence of the pandemic battering its tourism-reliant economy, rising oil prices and populist tax cuts.

Rajapaksa presided over an unprecedented economic crisis that saw the island nation's 22 million people suffer through months of food, fuel and pharmaceutical shortages.

The government warns it has barely enough revenue to pay public salaries and pensions despite huge tax hikes.

The country of 22 million people, famed for its beaches, ancient temples and aromatic tea, has been struggling for months to pay for essential imports of fuel, food and medicine because of a lack of foreign exchange.

Former president Chandrika Kumaratunga, Sri Lanka's first woman head of state, survived the attack at her final rally in the capital, but lost her right eye.

Parliament voted overwhelmingly to endorse a constitutional amendment that limited presidential control of the police, judiciary and appointments to the civil service.

Human Resources Minister M Saravanan says this is to help Sri Lanka, which is currently facing an economic crisis.