Sri Lanka's president has agreed to replace his older brother as prime minister in a proposed interim government to solve a political impasse caused by the country's worst economic crisis in decades, a prominent lawmaker said Friday.

President Gotabaya Rajapaksa agreed that a national council will be appointed to name a new prime minister and Cabinet comprised of all parties in Parliament, lawmaker Maithripala Sirisena said after meeting with the president.

Sirisena, who was president before Rajapaksa, was a governing party lawmaker before defecting earlier this month along with nearly 40 other legislators.

However, Rohan Weliwita, a spokesperson for Prime Minister Mahinda Rajapaksa, said the president has not communicated any intent to remove the prime minister and a decision will be announced if such a step is taken.

Rajapaksa earlier reshuffled his Cabinet and offered a unity government in an attempt to quell the protests, but opposition parties refused to join a government headed by the Rajapaksa brothers.

Both the president and prime minister have held on to their positions, while three other Rajapaksa family members resigned from the Cabinet earlier in April in what appeared an attempt to pacify angry protesters.

The weak, divided opposition has been unable to form a majority and take control of Parliament on its own. (AP)

Gotabaya asks parties to show majority for interim govt proposal

Colombo: Sri Lankan President Gotabaya Rajapaksa on Friday asked the dissident group of his ruling SLPP coalition to start a dialogue with the Opposition parties on their proposal to form an interim government to tackle the unprecedented economic crisis.

A delegation from former president Maithripala Sirisena's SLFP met him in the morning to press for their demand on the formation of the interim government. Later, President Gotabaya Rajapaksa discussed with another dissident group who split from the ruling coalition.

Presidential officials said that the parties have agreed to form a five-member committee who would be talking to the main Opposition SJB and other Opposition parties. The President told them to show their majority by garnering the support of 113 lawmakers in the 225-member Parliament to form the interim government.

The dissidents demanded President Gotabaya Rajapaksa's elder brother and Prime Minister Mahinda Rajapaksa's resignation to make way for an interim government. Mahinda Rajapaksa, however, has made it clear not to resign and will head any interim government in the future. In the recent weeks, the powerful Buddhist clergy, civil society and trade chambers have demanded the formation of an interim government to handle the current economic crisis.

The President's talks with constituent parties was meant to discuss the proposal. However, the parties wanted separate meetings with the President without the presence of the prime minister and the Cabinet.

The dissidents and Opposition parties are united in the stand that no interim government would be possible with Mahinda Rajapaksa as the prime minister. However, the street protests throughout the island nation call for the resignation of the entire Rajapaksa family for their bungling in handling the economic crisis as people are forced to wait in long queues for essentials while enduring long power cuts.