People try to help an injured person, after gunmen stormed the Holey Artisan restaurant and took hostages, in the Gulshan area of Dhaka, Bangladesh July 1, 2016. [Photo/Agencies]

SPIKE IN MILITANT ATTACKS

Militant violence has spiked in Bangladesh in the last 18 months. Attacks have tended to be on individuals, often using machetes, and the raid on the restaurant was a rare instance of a more coordinated operation.

Earlier on Friday, a Hindu priest was hacked to death at a temple in Jhinaidah district, 300 kms (188 miles) southwest of Dhaka.

Both Islamic State and al Qaeda have claimed responsibility for many of the killings, although local authorities say no operational links exist between Bangladeshi militants and international jihadi networks.

Bangladesh security officials say two local militant groups, Ansar-al-Islam and Jamaat-ul-Mujahideen, are behind the violence. Ansar pledges allegiance to al Qaeda, while Jamaat-ul-Mujahideen claims it represents Islamic State.

"The bottom line is Bangladesh has plenty of local, (often unaffiliated), militants and radicals happy to stage attacks in ISIS's name," said Michael Kugelman, South Asia associate at The Wilson Centre in Washington DC, using an acronym commonly used for Islamic State.

Islamic State had claimed more attacks in Bangladesh than in Pakistan or Afghanistan, he said.