Sri Lanka's entire Cabinet of ministers on Monday agreed to resign once an agreement is reached on the formation of an all-party interim government, Prime Minister Ranil Wickremesinghe's office said after the president and premier offered to resign as unprecedented protests broke out and thousands of enraged demonstrators stormed the leaders' homes over their mishandling of the country's worst economic crisis.

President Rajapaksa on Saturday announced that he will resign. Prime Minister Wickremesinghe also said that he will step down after a new government is formed.

Opposition parties on Sunday held talks and decided to form an all-party interim government after President Rajapaksa and Prime Minister Wickremesinghe agreed to resign.

"All the ministers who participated in the discussion were of the opinion that as soon as there is an agreement to form an all-party government, they are ready to hand over their responsibilities to that government, the Prime Minister's office said.

This was following a discussion held on Monday with cabinet ministers, it said.

Party sources said that the issue of an all-party government would be discussed with the Speaker of Parliament later on Monday.