Sri Lankan President Gotabaya Rajapaksa has revoked a state of emergency after dozens of MPs walked out of the ruling coalition, which has been struggling to quell protests over economic downturn, Aljazeera reported.

In another setback for the administration on Tuesday, Finance Minister Ali Sabry resigned a day after his appointment and ahead of crucial talks scheduled with the International Monetary Fund for a loan programme.

Rajapaksa dissolved his Cabinet on Monday and sought to form a unity government as public unrest surged over the ruling family’s handling of the debt-heavy economy that has led to shortages of food, medicine and fuel and prolonged power cuts.

In a gazette issued late on Tuesday, Rajapaksa revoked the emergency rule ordinance that went into effect last Friday.

Sabry said in his resignation letter to the president that he believed he had “acted in the best interests of the country”.

“At this crucial juncture the country needs stability to weather the current financial crisis and difficulties,” he said in the letter seen by the news agency Reuters, also offering to resign from his seat in the Parliament of Sri Lanka if the president wanted to bring in someone from outside to replace him, according to Aljazeera.

Street demonstrations against the 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 instances.

Dozens of protesters peacefully gathered near the residence of the prime minister on Tuesday, Aljazeera reported.