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Information minister Keheliya Rambukwella said the cabinet of ministers had given approval for the seed bank to be established in Sri Lanka.
A note to cabinet said the SAARC standing committee, a key policy body of the regional group had set the basic objectives for the seed bank at an April 2010 meeting in Thimpu, Bhutan.
South Asian states will also develop a common minimum quality seed standard (CMSD) and a seed testing procedure which will lead of a common seed certification system and seed standard among SAARC member states.
The bank will act as a 'regional seed security reserve' for member states and will support 'national seed security' efforts to address seed shortages and foster inter-country partnerships.
The member states are expected to agree on a common varieties of priority crops while recognizing the need to preserve indigenous varieties.