COLOMBO, Nov 22: Pakistan and Sri Lanka resolved to build on their partnership for peace and development in a Joint Press Statement issued at the conclusion of Prime Minister Shaukat Aziz's two-day visit to Colombo on Monday.

The three-page statement highlighted all important decisions taken during Prime Minister Shaukat Aziz's comprehensive talks with his Sri Lankan counterpart Mahinda Rajapakse and President Chandrika Kumaratunga.

"Both sides agreed that meetings between leaders of the two countries contributed in enhancing the excellent bilateral ties that existed between the two countries and reaffirmed the desire to continue to have such interactions to strengthen the cooperation between Sri Lanka and Pakistan and further develop their partnership for peace and development," the statement said.

President Chandrika Kumaratunga acknowledged and appreciated the support and assistance extended to Sri Lanka by Pakistan in the field of defence. Both sides agreed to strengthen cooperation in this field and to review the credit line (US$ 20 million) with a view to its operationalization," the statement said.

Pakistan offered the credit line to Sri Lanka in 1999 for procurement of defence equipment. "With regard to the Joint Economic Commission which had not met since 2002, it was agreed to convene a meeting in the latter half of December in Sri Lanka.

The Civil Aviation authorities could also be included in the meeting to discuss the strengthening of air links between the two countries," the statement said. On areas pertaining to bilateral cooperation, both sides expressed their commitment to the early conclusion of the proposed Free Trade Agreement FTA).

The statement added: "Hence the leaders agreed to give political guidance to the respective negotiating teams who are due to meet in Islamabad on 24th November, so that the negotiation process would be accelerated and concluded by the end of 2004, with a view for signature early next year."

Sri Lanka also thanked Pakistan for offering placements for Sri Lankan diplomats at the Foreign Service Institute in Pakistan. Pakistan agreed further to help in securing placements for Sri Lankan students in businesses, IT, medical and other academic institutions in which Pakistan has special expertise.

It was noted that Pakistan and Sri Lanka could mutually learn from each other's specialized experiences and skills. While Pakistan would provide assistance in the fields of banking, telecommunications and IT, Sri Lanka would provide expertise in the textile and garment sector, as well as the gem and jewellery industry.

In this regard, Sri Lanka invited Pakistan to send a team to study the gem and jewellery industry in Sri Lanka, the statement said. It was agreed that a detailed plan of action on cultural exchanges should be signed next year. The exchange of Parliamentary delegations was another proposal that was agreed upon between the two sides.

Sri Lanka conveyed its appreciation to Pakistan on its effective Chairmanship of Saarc since taking over the Chair in January 2004. Both sides decided to cooperate closely to make Saarc more effective, the statement added.

Pakistan would be circulating a concept paper with special focus on health and on addressing the need to control the spread of HIV/AIDS in South Asia, and particularly on education.

According to the statement it was agreed that the member states should give a serious thought to formulating a vision for Saarc. Pakistan would be submitting a draft vision document for the third decade of Saarc at the next Summit.

It was noted that all these issues will be discussed at the 13th Saarc Summit to be held in Dhaka, Bangladesh in January 2005. The Prime Minister was in Sri Lanka in his capacity as Chairman of Saarc.

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