According to the Sri Lankan diplomatic mission in Bangladesh, security forces are trying to release the hostages.

Several foreigners are among those being held by eight or nine armed men in the Holey Artisan Bakery cafe in the city's Gulshan district, officials say.

Two police officers have been killed in a gun battle, a spokesman said, and about 30 others injured.

So-called Islamic State (IS) has said it carried out the attack.

A statement on the group's self-styled news agency Amaq said militants had attacked a restaurant "frequented by foreigners". It said that more than 20 people "of different nationalities" had been killed but this has not been confirmed, says the BBC.

(Excerpts from BBC)