Pakistan and Sri Lanka on Wednesday signed a free trade pact, and leaders of the two countries called for a recently postponed summit of South Asian nations to be held as soon as possible. Visiting Sri Lankan President Chandrika Kumaratunga and Pakistani Prime Minister Shaukat Aziz hailed the pact as a watershed in economic cooperation between their countries. "I am confident that my visit will give a new impetus to promote bilateral ties," Kumaratunga told a joint news conference after their talks. Bilateral trade between Pakistan and Sri Lanka was worth about US$150 million (¤117.5 million) last year. Agreements were also signed on agricultural cooperation, and the reciprocal granting of student visas without fees. Both leaders said they supported early rescheduling of the South Asian Association for Regional Cooperation summit that was called off in Bangladesh last week after India pulled out, citing recent political turmoil in Nepal. "The SAARC process should not be stalled due to this postponement and both countries will continue efforts to make SAARC an effective body," Aziz said.
