India has offered a $400 million credit line to Sri Lanka for development of its infrastructure and economy during a visit by the island nation's newly elected president, Gotabaya Rajapaksa.

Indian Prime Minister Narendra Modi also announced another $50 million credit line to help improve security in Sri Lanka following suicide bombings last Easter that killed more than 250 people.

Rajapaksa thanked India for its assistance and said he will work with New Delhi to ensure that the Indian Ocean remains a zone of peace.

India has been concerned about Sri Lanka leaning toward China, which is seeking more influence in the Indian Ocean region.

The two leaders told reporters on Friday that they also discussed increased cooperation in countering terrorism.