Opposition party member Rui Maria de Araujo has been sworn-in as East Timor's prime minister, leading a new 38-member Cabinet for the half-island nation.

The 50-year-old former health minister took the oath of office in a ceremony Monday presided over by President Taur Matan Ruak at the Lahane palace on the outskirts of the capital Dili.

Araujo replaces former guerrilla leader Xanana Gusmao, who resigned early this month to allow a new generation of leaders to take power. Officials said the new Cabinet would be smaller and include other parties.

The former Portuguese colony was invaded and occupied by Indonesia in 1975. It voted overwhelmingly in a U.N.-backed referendum in 1999 to end the brutal occupation and become a sovereign state on May 20, 2002.