Colombo: India`s External Affairs Minister S M Krishna on Friday called on Sri Lankan President Mahinda Rajapaksa to discuss various issues of bilateral interest, a media report said.
Krishna is here on a three-day official visit.
Officials of the two countries Friday signed an agreement where India offered $416 million for Sri Lanka`s northern railway development project, Xinhua reported citing presidential officials.
India has also promised to build homes for the internally displaced persons in Sri Lanka.
The Indian minister is the first foreign dignitary to be received by Rajapaksa since he began his second term with 59 cabinet members Nov 22.
Krishna will also inaugurate two Indian consulates in Jaffna in the north and Rajapaksa`s home district of Hambantota in the south of the country during his visit.