Prime Minister Manmohan Singh [Images] has stressed upon the importance of cooperation among SAARC countries to address various challenges facing the region, including terrorism, and has expressed confidence that the 15^th summit in Colombo on August 2-3 will provide impetus to many decisions already taken by the eight member States.

In a statement on the eve of his departure to Colombo for attending the Summit, the prime minister said during the 23 years since SAARC was established, the South Asian region had traversed a long distance.

'Today, there is a realization amongst SAARC countries that it is only by cooperating within SAARC that we will be able to strengthen ourselves individually and as a region and address the many common challenges that face us,' he said in his statement.

The prime minister said that during the 14th SAARC Summit in New Delhi [Images] it had been agreed to move SAARC from declaratory to implementation phase.

As part of this approach, several initiatives had been taken, notably the establishment of the SAARC Development Fund, the SAARC Food Bank, the proposal to establish a South Asian University, SAFTA and greater people-to-people contacts.

'I am confident that the forthcoming Summit will consolidate these gains and provide an impetus to the implementation of the many decisions that are in place,' he added.

The prime minister, who will leave for Colombo Friday morning, said he looked forward to holding discussions with Sri Lanka [Images]n President Mahinda Rajapakse on India's relations with Sri Lanka.

He also looked forward to holding bilateral meetings with the other leaders of the SAARC countries.

The summit of the Heads of State/Government of eight South Asian nations, being held under the shadow of a spurt in terrorist activities in the region, is likely to be dominated by discussions on collective action against the scourge.  

"South Asia is vulnerable to terrorism and collective action is needed to curb the scourge," External Affairs Ministry spokesman Navtej Sarna said on Thursday.

Negotiations have already been initiated on an agreement on Mutual Legal Assistance in Criminal Matters, which are likely to be finalised during the Summit. There is also a possibility that some documents would be signed.

India, which is the current chairman of SAARC, will hand over the chair to Sri Lanka on the inaugural day of the Summit.

Dr Singh will have a bilateral meeting with Sri Lankan President Mahinda Rajapakse on Friday after arrival in the Sri Lankan capital. Later in the evening, he will meet the Indian community there.

Asked whether the prime minister will raise the issue of attacks on Indian fishermen by Sri Lankan navy, the spokesman said the issue had been raised by India several times in the past.

He said a bilateral meeting will take place between the leaders of the two countries on the first day. He, however, did not specify whether the issue would be discussed.

The government has been under pressure back home to get back the Katchateevu island from Sri Lanka and scrap the 1983 agreement that recognised the island as a part of that country.

The two-day summit, which will be inaugurated on August two, will also discuss an increase in the number of Observers.

Presently, the US, EU, China, Japan [Images], Republic of Korea and Iran have observer status in the SAARC. Australia [Images] and Myanmar have applied for Observer status.

Referring to the SAARC Development Fund, which has been set up to assist needy nations of the region, the spokesman said a cell had been set up at the SAARC Secretariat.

India has already transferred $19.23 million to the fund and proposes to give the remaining amount out of a total commitment of $99 million by the end of the financial year.

Sources said four agreements are likely to be signed during the summit.

Progress is also being made on setting up a South Asian university and on development of a rail network. India has donated about 100 acres for setting up a South Asian university in New Delhi.