Gotabaya Rajapaksa has revoked orders giving him sweeping authority to act in the interests of public order, including suspending any laws, authorising detentions and seizing property.
Sri Lanka's President Gotabaya Rajapaksa has revoked a days-old state of emergency after huge public protests demanded he resign over the country's worst economic crisis in memory.
The decree issued on Tuesday night said he revoked emergency orders giving him sweeping authority to act in the interests of public security and preserving public order.
Rajapaksa had declared the emergency last week after crowds of protesters demonstrated near his home in the capital Colombo.
The protests initially began over shortages of essentials such as cooking gas, petrol, electricity and milk powder.
They have spread to every part of the Indian Ocean island nation and now the demonstrators are demanding the resignation of Rajapaksa and his government.
Rajapaksa has resisted the calls even after ruling party lawmakers said an interim government should replace his, and failing to do so would make them responsible for violence.
READ MORE: Anguish and desperation: Inside the Sri Lankan protests over economic woes
'We will face this'
A minister told parliament on Wednesday that Rajapaksa will not resign.
"May I remind you that 6.9 million people voted for the president," Chief Government Whip and Highways Minister Johnston Fernando said in response to opposition criticism.
"As a government, we are clearly saying the president will not resign under any circumstances. We will face this."
TV and social media images from Monday showed protesters stormed into the offices and houses of ruling party lawmakers and vandalised some premises.
On Tuesday, lawmakers at the first new parliament session since the protests flared asked the speaker to ensure their safety.
The president and his older brother, Prime Minister Mahinda Rajapaksa, continue to hold power in Sri Lanka, despite their politically powerful family being the focus of public ire.
The cabinet resigned on Sunday night, and Rajapaksa invited all parties to join a unity government. But the main opposition party rejected the proposal.
On Tuesday, nearly 40 governing coalition lawmakers said they would no longer vote according to coalition instructions, significantly weakening the government.
Sri Lanka has huge debts and dwindling foreign reserves, leaving it unable to pay for imported goods.
READ MORE: Sri Lanka ruling coalition loses majority as pressure mounts on Rajapaksa