COLOMBO: India and Sri Lanka on Friday signed four agreements during Narendra Modi 's maiden visit to the country, the first bilateral tour by an Indian premier in 28 years, with the Prime Minister announcing a slew of measures aimed at resetting ties with the strategic neighbour.

Prime Minister Modi, who arrived here on Friday morning on the final stop of his three-nation tour of Indian Ocean island nations , met Lankan President Maithripala Sirisena and discussed bilateral and issues of regional importance.

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"I am conscious of the significance of this visit. This is the first stand alone bilateral visit by an Indian Prime Minister since 1987," Modi said at a joint press meet with Sirisena, who was in India last month on his first foreign trip after assuming office in January.

The Prime Minister said his meeting with Sirisena has been very productive. It "gives me confidence and optimism about the future of our relations," Modi said .

The two sides signed four agreements on visa, customs, youth development and building Rabindranath Tagore memorial in Sri Lanka.

"The agreement today on cooperation between our customs authorities is a step in that direction. It will simplify trade and reduce non-tariff barriers on both sides," he said.

Modi said the progress made by two countries reflects "our shared commitment to stronger economic cooperation".

"Our trade has seen impressive growth over the past decade. I am aware of your concerns about trade with India. As I said in Delhi, we will try and address them," he said.

Modi said India stands ready to help Trincomalee become a petroleum hub and announced that New Delhi will provide a fresh Line of Credit of up to $318 million for the railways sector in Lanka.

"This will be used to procure rolling stock, and to restore and upgrade existing railway track," he said.

The Prime Minister also said that the Reserve Bank of India and the Central Bank of Sri Lanka have agreed to enter into a Currency Swap Agreement of $1.5 billion to help keep the Sri Lankan rupee stable.

He lauded the efforts of newly elected President Sirisena and assured him of all help from India.

"We stand with you in your efforts to build a future that accommodates the aspirations of all sections of society, including the Sri Lankan Tamil community, for a life of equality, justice, peace and dignity in a united Sri Lanka.

"We believe that early and full implementation of the 13th Amendment and going beyond it would contribute to this process," said Modi, who is here as part of his three-nation tour of Indian Ocean island nations that took him to Seychelles and Mauritius.

On the festering fishermen issue, Modi said, "This complex issue involves livelihood and humanitarian concerns on both sides. We should handle it from this perspective."

He added that both countries needed to find a long-term solution to the issue.

Modi said fishermen's associations in both countries should meet soon to find a mutually acceptable arrangement, which can then be taken forward by both governments.

India, which traditionally regarded Sri Lanka as within its sphere of influence, was furious last year when Rajapakse allowed two Chinese submarines to dock in Colombo.

Under Rajapakse, Sri Lanka built up steady debts as Beijing funded a string of major construction projects.

Since his loss to Sirisena in a January election, the pendulum has swung back towards India with the new president making attempts to renegotiate the terms of some loans.

Sri Lanka's new rulers last month also ordered a suspension of China's biggest investment project, a $1.4 billion new city on reclaimed land just next to Colombo's main sea port.

Mangala Samaraweera, Sirisena's foreign minister, has said that while Colombo wants to retain good relations with China, "we will not go overboard like the Rajapakse regime".

Charu Lata Hogg, a Sri Lanka expert at London's Chatham House think-tank, said there were signs of "a recalibration in its previous relationships with China in favour of improved ties with the West and India".

Beijing was a key defender of Sri Lanka at international forums when Rajapakse came under criticism over its rights record and allegations that 40,000 Tamil civilians were killed at the end of the war.

Modi's predecessor, Manmohan Singh, pointedly shunned a Commonwealth summit hosted by Rajapakse in 2013 over the treatment of Tamils.

(With inputs from agencies)