Sri Lanka's speaker of parliament on Monday said political party leaders have decided to elect a new president on July 20 through a vote in parliament.

In a statement, Speaker Mahinda Yapa Abeywardena said that following a meeting with all political party leaders, it was decided to convene parliament sessions on July 15 and inform the parliament that there was a vacancy for the presidency.

Read: Sri Lanka in political vacuum as talks go on amid crisis

Nominations for the presidency will be called for on July 19 and a vote will be taken on July 20 to elect a new president, the speaker said.

Party leaders also decided to form an all-party government under the new president and take steps to continue the supply of essential services.

Sri Lanka's President Gotabaya Rajapaksa on Saturday said he will step down from the presidency on July 13 amid economic and political instability.