Prime Minister Ranil Wickremesinghe arrived in New Delhi Thursday for an official visit shortly after the Sri Lankan government said it reversed a decision to award a $300-million housing deal to China in favour of joint venture with an Indian firm.

The visit, during which Wickremesinghe will hold talks with his Indian counterpart Narendra Modi on Saturday, comes against the backdrop of Sri Lankan President Maithripala Sirisena rejecting media reports about an Indian security agency’s purported involvement in an alleged plot to assassinate him.

Besides holding talks with Modi, Wickremesinghe will also meet home minister Rajnath Singh and external affairs minister Sushma Swaraj on Saturday. He will attend a programme in New Delhi on Friday.

“You are aware of the close friendship between India and Sri Lanka. Development cooperation will be on the agenda,” external affairs ministry spokesperson Raveesh Kumar told a news briefing on Thursday.

“All shades of political opinion in Sri Lanka are for a close relationship with India…The prime minister is visiting to strengthen cooperation,” he added.

The two sides are expected to review the status of India-assisted housing projects in Jaffna and discuss the reconciliation process and devolution of powers in Tamil-dominated areas in Sri Lanka’s north and east, officials said. India has built 44,000 houses in the north and plans to rebuild Palaly airport and Kankesanthurai harbor.

On Wednesday, Lankan government spokesman Rajitha Senaratne said cabinet approved a proposal for 28,000 houses worth $210 million in the north and east by India’s ND Enterprises and two Sri Lankan companies.

In April, state-run China Railway Beijing Engineering Group had bagged a tender worth more than $300 million to build 40,000 houses in Jaffna. However, the project was halted after residents demanded traditional brick houses instead of concrete structures planned by the Chinese firm. Senaratne said there was a total requirement of 65,000 houses and more contracts will be given to firms willing to build them at lower prices.

India is among the top four investors in Lanka with cumulative investments of more than $1 billion dollars since 2003.

First Published: Oct 19, 2018 00:08 IST