The two Prime Ministers met in a beach cottage in Shangrilla resort along the Indian Ocean and reviewed progress in bilateral ties against the backdrop of some positive developments witnessed lately.
The bilateral relations between the neighbours has been on an upswing like Pakistan's decision to grant the Most Favoured Nation (MFN) trade status to India and the release of an Indian helicopter that had strayed into Pakistani territory.
They are said to have discussed a whole range of issues, including the need for Islamabad to take action against the 26/11 perpetrators and build on the MFN status to India.
The issue of Jamaat-ud-Dawah being removed from the terror list may also have been touched upon.
Before the meeting, the two Prime Ministers shook hands and posed for photos.
Following the handshake, the two leaders held a brief delegation level talks after which they met separately.
The Indian side included External Affairs Minister S M Krishna, National Security Adviser Shivshankar Menon and Foreign Secretary Ranjan Mathai.
From the Pakistani side, Foreign Minister Hina Rabbani Khar, Foreign Secretary Salman Bashir and Interior Minister Rehman Malik were among those present.
The two leaders met ahead of the inauguration of the two-day summit of the South Asian Association for Regional Cooperation in the Addu atoll islands.
The meeting between Singh and Gilani comes after they met in March in Mohali on the margins of the Indo-Pak World Cup semi-final tie.
Prior to the big meeting, the Foreign Secretaries of the two countries met early today to finalise the agenda of the talks. It was the second meeting between the foreign secretaries in as many days.
Foreign Minister SM Krishna had also met Hina Rabbani Khar at least thrice yesterday.
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