Japan and Sri Lanka on Thursday agreed to improve bilateral cooperation in maritime security and coast guard activities in the Indian Ocean, local media reported.

During a meeting here between visiting Sri Lankan President Mahinda Rajapaksa and Japanese Prime Minister Shinzo Abe, the leaders agreed in a joint statement to promote and expand bilateral cooperation and discussion in maritime security issues with common concerns, Japan's Kyodo News Agency said.

The statement also said that Japan, one of the largest donors of the South Asian country, will provide about 41.1 billion yen ( 426.2 million U.S. dollars) in loans and about 2.7 billion yen ( about 28 million U.S. dollars) in grants for Sri Lanka's infrastructure development, according to Kyodo.

Rajapaksa also met with the Japanese imperial couple on Thursday.

On Wednesday, Rajapaksa also had a meeting with Japanese Defense Minister Itsunori Onodera on cooperation and exchanges between the two countries maritime forces.

Rajapaksa arrived in Japan on Tuesday for a four-day official visit and is expected to sign more agreements with Japan on investment.

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