Bloomberg - Sri Lanka’s opposition parties are trying to cobble together an all-party government and pick candidates who can take over after President Gotabaya Rajapaksa and Prime Minister Ranil Wickremesinghe agreed to step down, giving in to popular pressure in a country struggling to pay for essentials.

Rajapaksa will step down on Wednesday to allow for a smooth transfer of power, the parliament speaker announced on television late Saturday. The president left his residence before the protesters breached security and entered his official home and offices and his whereabouts are unknown.

Protesters set fire to Wickremesinghe’s private residence Saturday, hours after he said he would step down after holding the job for two months. Wickremesinghe is safe, his office said in a text message, without elaborating.

International Monetary Fund representatives said they plan to continue technical discussions with the finance ministry and the central bank. Secretary of State Antony Blinken said the US was closely watching the developments and urged the government to address popular discontent.

Key Developments

• Rajapaksa to Finally Exit After Sri Lanka Protesters Storm House
• Sri Lanka Leader Resignation ‘Marginally Market Positive’: Citi
• In Sri Lanka, What Comes After People Power?: Ruth Pollard
• Today Russia, Sri Lanka. Who’s Next? Emerging Markets Risk: Map
• Sri Lanka Raises Policy Rate as It Braces for 70% Inflation

(All times Sri Lankan)

Rajapaksa Informs PM of Intent to Resign (8:15 a.m.)

Rajapaksa has officially informed Wickremesinghe that “he will be resigning as previously announced,” a statement from the prime minister’s office said Monday.

Dollar Bonds, Rupee dips (8.:05 a.m.)

Investors are likely to see Rajapaksa’s resignation as “marginally market positive” as it would remove a focal point of the protests, Johanna Chua, Hong Kong-based chief economist for Asia Pacific at Citigroup Inc., wrote in a note. Sri Lanka’s dollar bonds due 2030 fell an 11th day on Monday, erasing earlier gains. The debt was indicated 0.2 cent lower at 27.347 on the dollar. The rupee dropped to a two-month low on Monday, slipping 0.1% to 364.68 per dollar.

Blinken Urges Government to Address Popular Discontent (2:30 p.m.)

Blinken said it was incumbent on the government to find solutions to bring back the prospect of long-term economic stability and address the “powerful and palpable” discontent on the ground.

“This is something we’re closely following,” he told reporters in Bangkok. “Thousands of people of all backgrounds are taking to the streets looking for accountability, looking for transparency, looking for a better future.”

Fresh Gas Shipments Arrive (2:00 p.m.)

A ship carrying 3,700 metric tons of LPG has reached Sri Lanka Sunday, a statement from the president’s office said, adding that two more ships with the cooking gas will arrive over the next few days.

“President Gotabaya Rajapaksa has instructed the officers to carry out the unloading and distribution of LPG as soon as the first ship arrives,” the statement added.

The fresh supplies will ease the domestic cooking gas crunch by the end of the month, the president’s office said, citing the main national gas supplier, Litro Gas Company.

Rajapaksa Ally Resigns as Minister of Investment Promotion (12:30 p.m.)

Sri Lankan tycoon Kulappuarachchige Don Dhammika Perera, one of the country’s richest men and a close ally of the Rajapaksa family, resigned as the minister of investment promotion, local media reported.

IMF to Continue Technical Discussions With Sri Lanka (4:22 a.m.)

The IMF plans to continue technical discussions with counterparts in the finance and central bank, saying it was “deeply concerned about the impact of the ongoing economic crisis on the people, particularly the poor and vulnerable groups.”

The fund hopes for a resolution of the current situation that will allow for a resumption of discussions for an IMF-supported program, the officials said in a statement.

Protesters Celebrate at the President’s Office and Residence (1:30 a.m.)

Protesters were celebrating into the night after hearing the news that Rajapaksa would step down as president.

Sri Lanka Military Calls For Public Support to Ensure Peace (12:06 a.m.)

General Shavendra Silva, a Rajapaksa ally who assumed the position of Chief of Defence Staff last month, called on Sri Lankans to support the armed forces and the police to ensure there’s peace in the country.

He held a briefing, flanked by the Army Commander General Vikum Liyanage and Air Force Chief Sudarshana Pathirana.

President to Resign on July 13, Parliament Speaker Says (10:26 p.m.)

Rajapaksa agreed to step down as president following a request from party leaders that he leave government, Parliament Speaker Mahinda Yapa Abeywardena said in a televised address.

“He asked me to inform the country that he will make his resignation on Wednesday July 13, because there is a need to hand over power peacefully,” Abeywardena said. “I urge everyone for the sake of the country to maintain peace to enable a smooth transition.”

PM Expresses Regret After Security Assaulted Media (9:30 p.m.)

Wickremesinghe expressed “grave regret” over security personnel assaulting journalists who were covering the ongoing protests, by security personnel, his media unit said in a statement.

Government troops had used batons to try and push back journalists who were covering the protests taking place outside Wickremesinghe’s private home. Protesters later set fire to the residence.

“Freedom of media is paramount to democracy in Sri Lanka. The prime minister requests both the security forces and the protesters to act with restraint to prevent any violence and ensure the safety of the public,” the statement added.

Protesters Enter the Prime Minister’s Official Residence (7:04 p.m.)

Protesters entered the official residence of the prime minister in Colombo, waving national flags, according to video footage on social media.

A smaller group also protested near Wickremesinghe’s private residence despite security officials firing tear gas, local media reported.

Sri Lanka PM Says Willing to Resign (5:48 p.m.)

Wickremesignhe told party leaders he is willing to step down as prime minister and make way for a new government, according to his media office.

He was taking this decision as fuel distribution was due to restart, the World Food Program director would be visiting soon and the debt sustainability report for the IMF will be finalized shortly.

“So as to ensure safety of the citizens, he is agreeable to this recommendation by the Opposition Party Leaders,” his media office said in a statement.