"Security forces have been ordered to shoot on sight anyone looting public property or causing harm to life," the Sri Lanka Defence Ministry spokesman Nalin Herath said.
The move comes a day after mobs targeted the homes of ruling-party politicians. Following this emergency powers were handed to the country's military and police to detain people without warrants.
The new powers for the military mean they can detain people for up to 24 hours before handing them to police, while private property can be searched by force, including private vehicles, the government said in a gazette notification. Shortages of fuel, food and medicine have brought thousands onto the streets in more than a month of protests that had been mostly peaceful until this week.
Earlier, a mob had assaulted a top Sri Lankan police officer and torched his vehicle near the prime minister's official residence in the capital Colombo.
Anti-government protesters in Sri Lanka on Tuesday set up a checkpoint on the road leading to the Bandaranaike International Airport in Colombo to prevent the Rajapaksa family loyalists from fleeing the country.
Prime Minister Mahinda Rajapaksa had tendered his resignation to President Gotabaya Rajapaksa on Monday following rampant civil strife between anti-government protesters and Rajapaksa clan loyalists.
Gut-wrenching visuals emerged on Tuesday, along with the news of at least five deaths and hundreds injured.
A ruling party Member of Parliament was also found dead by the Sri Lanka Police on Monday.
Earlier curfew was imposed on Sri Lanka by the then Prime Minister Mahinda Rajapaksa that was supposed to end on Tuesday. The curfew was then extended till 11 May. Sri Lankan army has been deployed to control the massive violent protests that has engulfed the island nation.