Somchai, tipped to be voted the next premier later this week, said there was now less chance of violence between pro- and anti-government groups.
Army chief Anupong Paochinda and national police chief Pracharawat Wongsuwan were also present at a press confidence announcing the lifting of the state of emergency.
Earlier, business and private sector leaders urged the government to quickly lift emergency rule, which empowers soldiers and police to take tough action against protesters, because it had damaged the country's image in the international community.
Former premier Samak declared the state of emergency on September 2 after one protester was killed and 40 injured in a bloody clash between pro- and anti-government groups in Bangkok.
However, the emergency rule prompted several foreign governments to issue statements advising their nationals to avoid visiting Thailand.
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