Addressing the nation over radio and television last night, the president said it is not possible to hold an acceptable election within the stipulated 90 days, without correcting the voter list.

Referring to the demands of the grand alliance for transparent ballot boxes and issuing voter ID cards, the president said the general election is an expensive process and it will not be good for a nation to hold more than one general election for a specific term.

"Any election without participation of all the parties will not be acceptable at home and abroad," he said, indicating deferment of the polls.

In his address, the president announced his decision to resign as chief adviser to the caretaker government and promised to form a new council of advisers in a day or two to hold a credible election within the shortest possible time.

He said until the new council of advisers takes over, the incumbent senior-most adviser will act as chief adviser.

"The newly constituted interim government will hold a free, fair, neutral and acceptable election to parliament within the shortest possible time in consultation with all parties concerned," said the president, who had taken over charge of the chief adviser (CA) as the rival political parties couldn't agree on a consensus choice.

He said the new council of advisers will carry out the responsibility in consultation with all concerned and ensure governance by people's representatives.

The president said he had to assume the office of Chief Advisor on October 29 in accordance with the constitution and took various steps towards holding the election in consultation with the advisers.

"Almost all my decisions and steps were either accepted or rejected by any of the political alliances...there was a lack of peace, discipline and tolerance."

Despite sincere efforts by the council of advisers during the last two and a half months there were chaos and bloody conflicts. Many people lost their lives due to "intolerable and aggressive programmes of the political parties that pushed the national economy to a disastrous end".

Also, he said, there is a lack of peace, discipline and tolerance.

To justify his ultimate steps, including the state of emergency, the president said he apprehended outbreaks of violence, which would be difficult to control.

"The whole nation is plunged into an abyss of concern, instability and uncertainty. Discipline is seriously affected."

The president said the country will move backward instead of heading forward while country's development and progress will be hampered if the ongoing activities by two major political alliances continue.

"Country's economy, trade and commerce will face setback, exports will collapse and an anarchic situation will continue," a worried President said, adding that the people do not want the situation to continue.

So, he said, a change is a must by ending this situation and the situation must be improved to ensure an opportunity so that the people can live in a peaceful manner.

However, the president said it requires time to take necessary measures to end the unwanted situation.

He said it has become imperative to declare the state of emergency to make the country self-sufficient in all respects - to move forward the economy, expand the export trade, maintain law and order and continue with the development trend.

"I am declaring the emergency which will be applicable across the country considering the welfare of the country and the people... I hope the armed forces will discharge their duty efficiently through upholding their goodwill like they did in the past," he said.