Muhammad Yunus
AFP

Nobel laureate Muhammad Yunus led a solemn tribute to Bangladesh's fallen independence heroes in the first act of his interim government on Friday, after a student-led uprising forced predecessor Sheikh Hasina into exile.

A day after returning home from Europe and vowing to "uphold, support and protect the constitution" as he was sworn into office, 84-year-old Yunus began the tough challenge of returning the country to democracy.

Hasina, 76, accused of widespread human rights abuses including the jailing of her political opponents, fled by helicopter to neighbouring India on Monday as protesters flooded Dhaka's streets in a dramatic end to her 15-year rule.

The military announced her resignation then agreed to student demands that Yunus -- who won the Nobel Peace Prize in 2006 for his pioneering microfinancing work -- lead an interim government.

Yunus, who has taken the title of "chief advisor" to a caretaker administration, comprised of fellow civilians bar one retired brigadier-general, has said he wants to hold elections "within a few months".

When polls might take place is not clear.

Officials of Hasina's former ruling party, the Awami League, have gone into hiding after revenge attacks saw some of their offices torched, while former opposition groups such as the key Bangladesh Nationalist Party (BNP) are rebuilding after years of crushing repression.

The new administration faces a daunting task.

The veteran economist has called for the restoration of order in the South Asian nation after weeks of violence that left at least 455 people dead, calling on citizens to guard each other, including minorities who came under attack.

In driving rain, Yunus stood silently on Friday alongside student and civil society leaders in the new "advisory" cabinet tasked with steering democratic reforms.

Together the group laid a wreath in the red-and-green colours of the national flag at the main memorial commemorating the millions who died in Bangladesh's 1971 liberation war against Pakistan.

Yunus suggested on his arrival on Thursday in Dhaka that Hasina's ouster was as significant as the conflict that brought Bangladesh into being.

"Bangladesh has created a new victory day," he told reporters. "Bangladesh has got a second independence."

Several of Yunus' advisers are loosely affiliated with the BNP, led by Hasina's longtime rival and former premier Khaleda Zia, 78, newly released from years of house arrest.

They also include student leaders who started the protests.

Yunus wrote in The Economist this week that his country needed a new generation of leaders "who are not obsessed with settling scores, as too many of our previous governments were".

However, Hasina's son Sajeeb Wazed Joy told the Times of India newspaper his mother still had hope of contesting political office.

"She will go back to Bangladesh the moment the interim government decides to hold an election," he said.

Hasina's flight abroad has heightened rancour towards India, which played a decisive military role in securing Bangladesh's independence, but also backed Hasina to the hilt.

Indian Prime Minister Narendra Modi was among the first to offer his "best wishes" to Yunus on Thursday moments after he was sworn in, saying New Delhi was "committed" to working with neighbouring Dhaka.

India's arch-rival Pakistan on Friday also said it hoped it could boost ties with Dhaka, with Prime Minister Shehbaz Sharif wishing Yunus "great success in guiding Bangladesh towards a harmonious and prosperous future".

China said Friday it also welcomed the interim government, promising to work with the country "to promote exchange and cooperation".

Farida Akhter, an adviser to the interim government, told AFP that the group would also visit a monument in Dhaka where the student protests started last month.

"We are paying our respects there, as the student movement began from there," she said, before naming the top task on their to-do list.

"Our first priority is law and order", she said.