In another setback for the administration, Finance Minister Ali Sambri resigned a day after his appointment in view of crucial talks scheduled with the International Monetary Fund on a loan program. Rajapaksa ousted his cabinet on Monday and sought to form a unity government as public unrest escalated to manage the heavy-handed economy of the ruling family that led to food and fuel shortages and prolonged power outages. A body of doctors also told the government that there was a severe shortage of medicines that could collapse the health system. Sign up now for FREE unlimited access to Reuters.com Register In a newspaper published late Tuesday, Rajapaksa revoked the emergency decree that came into force last Friday. “I, Gotabaya Rajapaksa, President of the Socialist Republic of Sri Lanka, am recalling the newspaper with effect from midnight on April 5, 2022,” the newspaper said, referring to the previous provision. Politically, possible next steps could include the appointment of a new prime minister to replace the president’s older brother, Mahinda Rajapaksa, or early parliamentary elections long before a scheduled 2025 vote. There was no immediate indication of what was planned. Sambri said in his resignation letter to the president that he believed he “acted in the interest of the country”. “At this critical juncture, the country needs stability to overcome the current economic crisis and difficulties,” he said in a letter seen by Reuters, also offering to step down if the president wanted to bring someone from abroad for to replace him. Protests in the streets against food and fuel shortages triggered by a lack of foreign exchange for imports began last month, but have intensified in recent days, leading to clashes between protesters and police in some cases. Dozens of protesters gathered peacefully near the prime minister’s residence on Tuesday. “WITH THE PEOPLE” The names of the 41 deputies who will leave the coalition were announced by the party leaders in Parliament. They have now become independent members, leaving the Rajapaksa government with less than the 113 members required to maintain a 225-member majority in parliament. The vote has not yet been counted, although the Rajapaksa minority government could find it more difficult to make decisions. Independent MPs, however, could continue to support the government’s proposals in Parliament. “There are endless shortages of basic necessities such as fuel and cooking gas. Hospitals are on the verge of closing because there is no medicine,” said Sri Lankan Freedom Party leader Maithripala Sirisena, who withdrew her support for the coalition. Rajapaksa. “At such a time our party is on the side of the people.” Signposters chanted slogans against Sri Lankan President Gotabaya Rajapaksa and demanded that Rajapaksa politicians resign during a protest in the middle of the country’s financial crisis on a main street in Colombo, Sri Lanka, on April 4, 2022. REUTERS / Dinuka Liyanawatte read more In a further indication of a desperate lack of funds, Sri Lanka announced the temporary closure of its embassies in Oslo and Baghdad and the Consulate General in Sydney on April 30. The Foreign Ministry said it was restructuring the Sri Lankan diplomatic mission due to “the country’s economic situation and foreign exchange restrictions”. The Government Medical Workers’ Union, which represents more than 16,000 doctors across the country, said there was a severe shortage of medicines, including life-saving medicines. “Failure to ensure the continuous and adequate supply of essential medicines will lead to the collapse of the entire health system,” the health ministry said in a letter. “This will create a life-threatening situation for our citizens who are already facing an unprecedented crisis.” Reuters Graphics SHARES ARE RISING The Columbus Stock Exchange (.CSE) All-Share Index jumped about 6% as lawmakers clarified their positions in parliament. Sirisena, along with other lawmakers, called on the president and prime minister to present a clear plan to resolve Sri Lanka’s economic woes. However, opposition parties – reflecting the climate of protests sweeping the country of 22 million – urged the two brothers to resign. A third brother, Basil Rajapaksa, resigned as finance minister on Sunday. Protests erupted in many parts of Sri Lanka, including its largest city, Colombo, over the country’s worst economic crisis in decades. Opposition parties have also rejected a move to form a unity government that would include all parties represented in parliament. “There must be no voice that opposes the voice in the streets. And the voice is that there must be change,” said Sajith Premadasa, leader of Samagi Jana Balawegaya, Sri Lanka’s main opposition. “What the people want is for this president and the whole government to resign.” A small group of people demonstrated near the parliament, as police guarded with tear gas and water cannons. “If the government loses its majority, you could see the opposition voting in disbelief, but there is a parliamentary process that goes beyond the first and is unlikely to happen immediately,” said Luwie Niranjan Ganeshanathan, a lawyer who specializes in constitutional issues. If a vote of no confidence is passed, then the president can appoint a new prime minister, he said. The opposition may also introduce a resolution calling for the dissolution of parliament and for early elections, Ganesanathan added. Sign up now for FREE unlimited access to Reuters.com Register Report by Uditha Jayasinghe and Devjyot Ghoshal in Colombo. Additional references by Waruna Karunatilake in Colombo. Written by Devjyot Ghoshal and Krishna N. Das. Curated by: Raju Gopalakrishnan, Bernadette Baum and Jonathan Oatis Our role models: The Thomson Reuters Trust Principles.