Sri Lanka High Commissioner in Indaia, Prasad Kariyawasam said that eight memorandums of understanding were signed after President Rajapaksha held talks with Indian Prime minister Manmohan Singh.

“Indo - Sri Lankan relations have now moved onto a new level,” said Kariyawasam.

He said that the joint declaration provided an opportunity for both countries to forge a strong relationship.

Massive projects

Among the projects identified are building 50,000 houses for the displaced in the North of Sri Lanka, reconstruction of the northern railway infrastructure, and a 500 mega watt thermal power plant in the eastern town of Sampur.

Rehabilitation of Kankesanthurai harbour and Palaly Airport, construction of a cultural centre in Jaffna and several vocational training centres, renovation of the Duraiappah stadium and rehabilitation of war widows are also among the proposed projects.

Both countries have also decided to resume the ferry services between Colombo and Tuticoran and between Thalaimannar and Rameswaram .

Kariyawasam also said that reconsiliation and rehabhilitation and power sharing was also discussed with the Indian Prime minister.

Devolution package

Indian Foreign Ministry sources revealed that Manmohan Singh observed that a meaningful devolution package,and building upon the 13th Amendment, would create the necessary conditions for reconciliation.

India also said that Sri Lanka has reaffirmed its support for the candidature of India as a Permanent Member of an expanded UN Security Council.

India is a candidate for a non-permanent seat on the UN Security Council for 2011-2012.