New Delhi: Prime Minister Narendra Modi on Friday (November 29) announced financial assistance of $450 million to Sri Lanka including $50 million for counter-terrorism after holding talks with the visiting Sri Lankan President Gotabaya Rajapaksa.

"$400 million line of credit to be extended to Sri Lanka to strengthen its economy. Under the Indian housing project, 46,000 houses have already been constructed in Sri Lanka. 14,000 houses further being made for Tamil origin people.  $100 million credit line given for solar projects.

Condemning the April 21 Easter Sunday attack in the island nation, PM Modi said India is extending a $50 million line of credit to Sri Lanka to fight terrorism.

"India has always condemned and fought against terrorism. India is extending a $50 million line of credit to Sri Lanka to fight terrorism," PM Modi said.

Thanking PM Modi for the financial aid to counter-terrorism, Rajapaksa said, "I want to thank him for offering a fifty million dollar line of credit to enhance the capabilities of the intelligence agencies."

He also said, "With India, our corporation is multi-faceted with priority given to security-related matters".

Prime Minister Modi also congratulated Rajapaksa on his recent election victory and said it is a matter of honour for us that President Rajapaksa chose India for his first foreign trip.

"I want to extend my hearty congratulations to President Gotayaba for his election victory. I want to congratulate the people of Sri Lanka for successfully concluding the election process," PM Modi said.

"It is a matter of honour for us that President Rajapaksa chose India for his first foreign trip and gave us the opportunity to honour him in India within two weeks of taking office," he added.

PM Modi said that the mandate given to Rajapaksa is the expression of the "ambitions of the people of Sri Lanka for a strong country.''

"The mandate was given to you (Sri Lankan President Gotabaya Rajapaksa) is the expression of the ambitions of the people of Sri Lanka for a strong country. A strong Sri Lanka is not only in the interest of India but that of the entire Indian Ocean region," PM Modi added.

Prime Minister Modi made these remarks after holding talks with Sri Lanka's President Gotayaba Rajapaksa, who is on a three-day visit to India.