India, Lanka Sign Key Defence Pact After PM Modi, President Dissanayake's Meet

India and Sri Lanka signed a major defence cooperation pact for the first time ever after Prime Minister Narendra Modi and President Anura Kumara Dissanayake spoke.

The two countries signed a few more pacts, including one to develop Trincomalee as an energy hub. Another agreement was signed to provide India's multi-sectoral grant assistance to the eastern region of Sri Lanka. The two leaders also virtually inaugurated the Sampur solar power project.

The talks follow Mr Modi's arrival in the Sri Lankan capital after his visit to Bangkok where he attended a summit of the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation).

In perhaps the first of such honour given to a foreign leader, Mr Modi was accorded a ceremonial welcome at the historic Independence Square in the Sri Lankan capital, where he was also received by President Dissanayake. 

Glimpses from the ceremonial welcome in Colombo this morning.@anuradisanayake pic.twitter.com/88k2T1NN20 — Narendra Modi (@narendramodi) April 5, 2025

The Independence Square holds importance as it takes it name from the  Independence Memorial Hall built to commemorate the country's independence from British rule in 1948.

"PM @narendramodiwas welcomed by President @anuradisanayake with a ceremonial reception at the Independence Square in Colombo," External Affairs Ministry spokesperson Randhir Jaiswal said on 'X'.

"Bilateral discussions to foster a partnership for a shared future & mutual prosperity of our people, lie ahead," he said.

Mr Modi's visit to Sri Lanka comes at a time when the latter is only just recovering from economic stress. India extended financial assistance worth USD 4.5 billion when the island nation was reeling under financial crisis 3 years back.

Sri Lanka's President Anura Kumara Dissanayake also honoured Mr Modi with Mitra Vibhushana, the highest award to a foreign head of state, and said that Mr Modi highly deserves this honour.

In a joint press statement alongside PM Modi, Dissanayake said, "I am pleased to announce that the Government of Sri Lanka has decided to confer upon him (PM Narendra Modi) the highest Sri Lankan honour to a foreign head of state/head of government- Sri Lanka Mitra Vibhushana. This prestigious honour, which was introduced in 2008, is conferred upon heads of states and government for their friendship, and honourable Prime Minister Modi highly deserves this honour; that is what we firmly believe."

In another development, Mr Modi also announced a big relief to several fishermen from Tamil Nadu and said that he had also raised their concerns and declared that Sri Lanka has agreed to release any Indian fishermen immediately and also promised to return their boats. Mr Modi's visit also comes at a time when Tamil Nadu has passed a resolution to retrieve Katchatheevu from Sri Lanka - regarded as a soft spot for fishermen in the state pertaining to the long-standing dispute over fishing rights around the island.