Xinhua Asia-Pacific news summary at 1600 GMT, March 17

Indonesia's central bank held its benchmark interest rate unchanged at 7.5 percent on Tuesday after it unexpectedly cut the basic rate by 25 basis points last month, official said here.

The policy stressed that the lender sticks on its tough monetary policy. (Indonesia-Interest Rate)

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KATHMANDU -- China and Nepal signed Tuesday an agreement for providing a grant assistance of RMB 800 million (128 million U.S. dollars) to the Nepalese government under the Economic and Technical Cooperation between the two countries.

Chinese ambassador to Nepal Wu Chuntai and Finance Secretary Suman Prasad Sharma signed the agreement here in the presence of Finance Minister Dr Ramsharan Mahat. (Nepal-China-Assistance)

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COLOMBO -- Former Sri Lankan President Mahinda Rajapakse has decided to contest for the prime ministership at parliamentary elections scheduled to be held after April 23.

Rajapakse who lost the Presidential Elections in January has decided to contest under the Sri Lanka Labour Party, a separate political party and not his own Sri Lanka Freedom Party (SLFP). ( Sri Lanka-PM)

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YANGON -- Peace negotiators of the Myanmar government and ethnic armed groups, in their first day of resumed peace talks in Yangon Tuesday, agreed to seek political ways for reducing conflict referring to the current fighting in Kokang region and Kachin state.

Participants agreed to take the lesson out of the current issues to prevent recurrence through understanding building, according to a press conference held at the end of the first-day talks. (Myanmar-Negotiations) Endi