Sri Lankan ties to get a boost

Islamabad: Pakistan Prime Minister Yousuf Raza Gilani and Sri Lankan President Mahinda Rajapakse held talks here at Prime Minister House and decided to further enhance and promote bilateral cooperation in economy, trade and defence, media, technical education and other sectors.

Gilani emphasised the need to explore the true potential of trade between the two countries. He said the commonality of views on different international and regional issues was the hallmark of the bilateral relationship between the two countries.

The Sri Lankan President said his country looked forward to expanding trade and economic ties with Pakistan.

Later, the prime minister hosted a luncheon reception in honour of the Sri Lanka president and members of his delegation. The reception was also attended by members of the cabinet, Chief of Army Staff General Ashfaq Kayani, Chief of Air Staff Air Chief Marshal Rao Qamar Sulaiman and other top officials.

Earlier on his visit Rajapakse and his Pakistani counterpart Asif Ali Zardari agreed to increase bilateral trade to more than $2 billion (Dh7.3 billion) over the next three years. Pakistan is one of the largest trade partners of Sri Lanka, with their current trade standing at $375 million. The two countries have a free trade agreement, Dawn reported.

Zardari told Rajapakse there was huge scope to boost cooperation by "building on shared values, enhancing connectivity, increasing the synergies of our economies and reinforcing the institutional framework for cooperation".

Rajapakse who began the three-day visit on Friday was accompanied by Foreign Minister G.L. Peiris, secretary to the president Lalith Weeratunga and media adviser Bandula Jayasekara.

Zardari suggested a number of measures to increase trade, including the establishment of a direct shipping service between the two countries. Both countries are also set to sign an agreement under which Sri Lanka would get a $200 million export credit facility through the State Bank of Pakistan.