Kathmandu, 6 Janaury 2001: Visiting Mongolian President Natsagiin Bagabandi Saturday laid the foundation of a monastery to be built by  Mongolia at Lumbini, the birthplace of the Buddha. Bagabandhi and his wife A. Qyunbileg offered prayers at the Maya Debi temple. Officials of the Lumbini Development Trust briefed the visitors of plans to development of the holy site.

Nepal has allotted land to various countries to develop monasteries at Lumbini. King Birendra and Queen Aishwarya accompanied the Mongolian president and his wife to Lumbini. Bagabandi and his wife also prayed at the Syambhunath temple in the capital Saturday. Business representatives of Nepal and Mongolia signed an agreement Friday to boost nominal business ties.

Mongolia has shown interest in exporting wool to Nepal. Bagabandi and his wife arrived in Nepal Friday for a three-day state visit– the first by a Mongolian President to Nepal after the establishment of diplomatic ties 40 years ago.