Both countries will also strengthen bilateral trade, focusing on textiles, pharmaceuticals, and information technology, as well as sign a defence deal, according to Indian media reports.
Analysts said the defence deal was set to be one of the most significant milestones in relations between New Delhi and Colombo in recent years, with both sides expected to increase military cooperation through joint maritime surveillance, exercises and equipment support.
Modi will be the first foreign leader to be hosted by Dissanayake who was sworn into office last September.
Michael Kugelman, director of the Wilson Centre’s South Asia Institute, said the visit came amid growing competition between India and China to forge closer ties with the littoral states of South Asia, including Sri Lanka.