The defence pact is among seven key agreements signed by the two sides following wide-ranging talks between PM Modi and Sri Lankan President Anura Kumara Dissanayake

The defence pact, being seen as a major move to bolster strategic ties, came nearly four decades after the Indian Peace Keeping Force's intervention in the island nation

"We believe that our security interests are similar. The security of both countries is interlinked and dependent on each other," PM Modi said in his media statement

"I am grateful to President Dissanayake for his sensitivity towards India's interests. We welcome the important agreements concluded in defence cooperation," he said

In his remarks, Dissanayake said he assured PM Modi that Sri Lanka will not allow its territory to be used in any manner inimical to India's security interests

He said he also conveyed to Modi that India's assistance to Sri Lanka in times of need and continuing solidarity are deeply cherished

Another important agreement that the two sides inked was on developing Trincomalee as an energy hub

PM Modi and President Dissanayake also virtually inaugurated the Sampur solar power project

"The Sampur Solar Power Plant will help in Sri Lanka's energy security. All the people of Sri Lanka will benefit from the agreements signed for building a multi-product pipeline and developing Trincomalee as an energy hub," PM Modi said