COLOMBO: For the first time, India and Sri Lanka on Saturday inked an ambitious defence cooperation pact following talks between Prime Minister Narendra Modi and President Anura Kumara Dissanayake.

The two sides also signed a pact to develop Trincomalee as an energy hub. Another agreement was inked to facilitate New Delhi's multi-sectoral grant assistance to Sri Lanka's eastern region.

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

Several agreements were also firmed up between the two sides following the talks between the two leaders.

The talks were held a day after Modi arrived in the Sri Lankan capital after concluding his trip to Bangkok where he attended a summit of the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation).

Ahead of the talks, Modi was accorded a ceremonial welcome at the historic Independence Square in the heart of the Sri Lankan capital, in perhaps the first such honour given to a foreign leader.

President Dissanayake received the prime minister at the Square -- the venue for national day celebrations and takes its name from the Independence Memorial Hall built to commemorate the island nation's independence from British rule in 1948.