Calling India-Sri Lanka relations a "role model for the entire region", External Affairs Minister K. Natwar Singh Friday announced the signing of agreements in human resource development and offered to train 450 Lankan policemen as part of defence cooperation between the two countries.

"We have signed two agreements today, one relating to small development projects and the other dealing with an exchange programme on education. Both are important because they focus on the most valuable resource we have - our people," Singh told reporters.

He also announced funds for a pilot project of 20 e-libraries or "nenasalas" in Sri Lanka.

Singh, who arrived here on a three-day visit Thursday, co-chaired the meeting of the joint commission with his Lankan counterpart Lakshman Kadirgamar and discussed ways to further expand economic cooperation.

He met Sri Lankan President Chandrika Kumaratunga and Prime Minister Mahinda Rajapakse and repeated India's support for a broad-based peace process involving all groups that constitute Lanka's multi-cultural society.

"We support the process of seeking a comprehensive, negotiated settlement acceptable to all communities and reflecting the pluralistic nature of Sri Lankan society within the framework of a united and democratic Sri Lanka," Singh said.

The sixth session of the joint commission reviewed bilateral relations and pushed the growing integration between the economies of India and Sri Lanka.

"Bilateral free trade agreement between India and Sri Lanka has been a huge success story with the two-way trade touching $1.8 billion," he said. 

"Both countries have decided to realise the enormous potential that exists for further economic and commercial cooperation. Negotiations are currently in progress for concluding a Comprehensive Economic Partnership Agreement, hopefully by the end of this year," Singh added.

A joint statement issued after the meeting spoke about the "two economies moving towards closer integration under the Indo-Sri Lanka Free Trade Agreement".

Public investments in power, energy and transport sectors were also discussed.

The National Thermal Power Corporation (NTPC) would submit a detailed proposal for setting up a coal/LNG (Liquefied Natural Gas) plant in Sri Lanka. "It was also agreed that a block will be allocated to India for oil and gas exploration," the statement said.

A meeting of experts for consultation on the Sethusamudaram canal project will be held soon.

Both sides agreed to step up people-to-people contacts, particularly through tourism and civil aviation.

Singh is in Sri Lanka at a time when the island nation is grappling with a debate on the controversial joint tsunami deal to share millions of dollars in relief with the Tamil Tiger guerrillas. 

During Kumaratunga's visit to India last week, Prime Minister Manmohan Singh had expressed New Delhi's support and understanding for her efforts to establish a Post-Tsunami Operational Management Structure for coordinating relief and reconstruction in areas affected by the tsunami.