Sri Lanka and Pakistan have signed a free-trade agreement to strengthen their economic ties during a visit by General Musharraf.

The island state's government has been trying to rebuild its economy after a ceasefire agreement was signed in February with the separatist Tamil Tigers, ending almost two decades of civil war.

The key areas for Sri Lanka exporters are tea, electronics, engineering and textiles.

Ravi Karunanayake Sri Lankan Commerce Minister

"[The trade agreement] will give our exporters access into Pakistan, and the exporters of Pakistan into Sri Lanka without harming any of our industries," said Sri Lankan Commerce Minister Ravi Karunanayake.

General Musharraf signed the agreement with Sri Lankan Prime Minister Ranil Wickramasinghe as part of a five-day South Asian tour which will culminate on Friday in China, a major arms supplier to Pakistan.

Sri Lanka traditionally enjoys close ties with India, its giant neighbour, but has successfully established good relations with Pakistan, a key military supplier.

Bilateral trade

Bilateral trade, totalling about $130m a year, is heavily tilted towards Pakistan.

Mr Karunanayake said he expected the pact to help garments and tea, Sri Lanka's two biggest export industries.

"The key areas for Sri Lanka exporters are tea, electronics, engineering and textiles. In textiles we got a major opportunity into the Pakistan market," he said.

The Sri Lankan market for engineering, vehicles and some agricultural items such as fruit would be opened up to Pakistani producers, he said.

In the absence of a pan-South Asian trade pact, Sri Lanka has already struck a free trade agreement with India and is working on a similar treaty with Bangladesh.

Military aid

General Musharraf arrived in Sri Lanka to red-carpet treatment and praise for supporting the government in its fight with the Tamil Tigers.

Pakistan provided emergency military aid in 2000, mainly multi-barrel rocket launchers, when the separatists threatened to retake the northern Jaffna peninsula.

The aid is considered as decisive in checking the Tigers advance.

Mr Karunanayake told the BBC's World Business Report that the agreement covered commercial goods and not arms.

General Musharraf avoided directly answering questions on future military aid.

"We are for the sovereignty and territorial integrity of Sri Lanka. We are with them all the way," he said before talks with Prime Minister Wickramasinghe.

General Musharraf last visited the island in October 1999, days before he took power in Pakistan in a bloodless coup.

He was sacked as head of Pakistan's military while on the flight back from Sri Lanka and overthrew Prime Minister Nawaz Sharif when he landed.