The Prime Minister Dr. Manmohan Singh today urged Sri Lankan President, Mahinda Rajapaksa to initiate a meaningful devolution package to resolve the ethnic issue. <br/><br/>Dr. Singh also called for urgent steps to re-settle the displaced Tamil civilians who continue to remain in relief camps. Briefing reporters after the delegation level talks between the Prime Minister, Dr. Manmohan Singh and the visiting Sri Lankan President, the Foreign Secretary, Ms. Nirupama Rao said that the Prime Minister conveyed India's concerns over the plight of displaced Tamils.<br/><br/>He urged the Sri Lankan leader that end of the insurgency in May last year, has offered Sri Lanka a historic opportunity to spearhead an era of reconciliation. <br/><br/>Official sources said, Sri Lankan government conveyed to India that it intends to move forward quickly in regard to achieving a political settlement that could satisfy the aspirations of the minorities. Mr. Rajapaksa also conveyed his desire to seek an inclusive process and has begun consultations in this regard. New Delhi sees it as an encouraging development, added official sources. <br/><br/>The Prime Minister also reviewed the implementation of the 500 crore rupees grant given by India for rehabilitation of the displaced people and granted 800 million dollar Line of Credit to the Sri Lankan government for railway network in the war torn area. She said, the two leaders agreed on a major initiative of building 50 thousand houses for the displaced people. India will provide assistance for that. <br/><br/>The two leaders agreed to facilitate greater interaction between the captains of industry, besides working on a more comprehensive framework to intensify the economic cooperation.<br/><br/>Earlier, the two countries signed seven pacts, ranging from security to development after one and a half hour talks. The two leaders had one-to-one talks for about 45 minutes. Mr Rajapaksa who arrived in New Delhi on a four-day visit to India last evening, held talks with the External Affairs Minister, Mr. S.M. Krishna and the Finance Minister, Mr. Pranab Mukherjee. <br/><br/>A delegation of Tamil MPs also called on him and conveyed their concern over the plight of Tamils. The UPA Chairperson, Mrs. Sonia Gandhi and leader of the opposition in Lok Sabha, Mrs. Sushma Swaraj also called on the visiting dignitary to discuss issues of mutual interest. <br/><br/>The President, Mrs. Pratibha Devisingh Patil is hosting a banquet in honour of the visiting dignitary later this evening. He is scheduled to visit Shimla and Chandigarh before leaving back home.