We'll try to get there (to lower trade barriers and forge a currency union) much faster," Foreign Minister Rohitha Bogallagama told reporters this week.
The eight-member South Asian Association for Regional Cooperation or SAARC first mooted a free trade pact in 1995, but it remains largely limited to paper and member states have begun cutting bilateral deals instead.
SAARC, whose leaders meet in Colombo for a two-day summit starting on Saturday, has made little headway toward regional economic integration since it was formed in 1985, analysts say.
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"Politics have hijacked SAARC's economic agenda," HSBC economist Arjunna Mahendran told AFP.
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Analysts say the group has been held hostage to hostility between India and Pakistan -- its two largest members -- which have fought three wars since independence from Britain, two over the disputed Himalayan region of Kashmir.
Tensions now are rising a