Bangladesh and Bhutan agreed to consolidate their "already excellent" ties for mutual benefit, during a meeting between visiting Prime Minister Sheikh Hasina and her Bhutanese counterpart Tshering Tobgay.

The two sides also inked eight deals after the talks in Thimphu.

The two leaders discussed various bilateral and regional issues for cooperation – in the areas of power, water resources and connectivity for mutual benefit. They reaffirmed that the relations are based on "friendly ties and reflective of their common aspiration for peace, collective prosperity and development of the region and beyond", a joint statement said.

Both sides welcomed the proposed trilateral MoU with Bangladesh, Bhutan and India for Hydroelectric Power cooperation.

The deals inked are on agriculture, avoidance of double taxation, culture and quality control of goods and allowing landlocked Bhutan the use of inland waterways.

"The most prominent part of our talks was about using connectivity to increase trade," said Bangladesh Foreign Secretary Md Shahidul Haque after bilateral talks between Hasina and Tobgay at Gyalyong Tshogkhang.

On Wednesday, Hasina unveiled the floor plan for a new chancery building of the Bangladesh embassy in Bhutan, bdnews24.com reported.

Plans for the embassy's main office were revealed on the second day of her three-day visit to Bhutan, in the presence of the King of Bhutan, Jigme Khesar Namgyel Wangchuck.

A transfer agreement to the effect was signed by Bangladesh Foreign Minister A.H. Mahmood Ali and Bhutan's Minister of Foreign Affairs Damcho Dorji.

Hasina and Tobgay were present during the signing.

After the unveiling, the national flag of Bangladesh was raised on the spot and the national anthem was played.

On Wednesday, the two Prime Ministers also addressed the International Conference on Autism & Neuro-developmental disorders which was being jointly organised by Bhutan and Bangladesh in Thimphu, bdnews24 reported.