Official sources said there was a possibility that Wednesday's historic meeting may lead to a quick round of foreign secretary-level talks before the Non-Aligned Meeting in South Africa in the last week of August, where the two Prime Ministers will meet again.

Vajpayee and Sharif will meet on Wednesday afternoon, soon after the inaugural session of the 10th SAARC summit, and it is believed that the two leaders will focus on the resumption of the foreign secretary talks between the two countries that were abruptly abandoned last September due to differences on procedure.

It is believed that the date for a meeting between the foreign secretaries may have already been finalised by Indian foreign secretary P. Raghunath and his Pakistani counterpart ShamshadAhmed during their meetings here in the last few days. Indian officials said they were hopeful that the talks between the two leaders would not get ``bogged down in procedure'' and would concentrate instead on how to ``carry forward the dialogue'' between the two countries.

Immediately on arrival in the Sri Lankan capital, both Prime Ministers were optimistic of this. ``I am always optimistic. I am confident of a dialogue between India and Pakistan,'' said Vajpayee after his special Indian Air Force plane touched down at the Bandaranaike International Airport.

He said he would discuss ``many things'' with Sharif, including India's proposal for a nuclear no-first use pact.

A few hours later, Sharif said he and Vajpayee would ``discuss all the problems.'' ``We will discuss all issues concerning Pakistan, concerning India too,'' he said soon after his arrival here. However, he said the core issue was Kashmir, which according to him was ``the root cause'' of all the tension. Wednesday's meeting betweenVajpayee and Sharif will be the first since the two countries tested nuclear devices aggravating bilateral tensions. The last time the Prime Ministers of the two countries met was in Dhaka in January this year, but the then Indian Prime Minister Inder Kumar Gujral's proposals for resumption of foreign secretary-level talks did not find acceptance across the border.

Significantly, the Pakistani Prime Minister was not accompanied by his close aide and information minister Mushahid Hussain, a known hawk. However, foreign minister Gohar Ayub Khan, who is here, is expected to compensate for Hussain's absence.