Sri Lankan President Mahinda Rajapaksa, who is on a three-day state visit to Russia met the President of the Russian Federation Dmitry Medvedev in Moscow this evening.

The two leaders discussed ways to strengthen the bilateral relations between the two countries and Russia's economic assistance to Sri Lanka.

Meanwhile Russia and Sri Lanka also signed a $300 million loan to buy armaments and dual-purpose technology for Sri Lanka's military, Russia's deputy finance minister said.

Dmitry Pankin said it is a 10-year loan with LIBOR plus 3.5% interest.

The arms deal will cover not only purchases but also extensive repairs of Russian military equipment previously delivered to Sri Lanka.