Prime Minister Narendra Modi said the handing over of houses built by India in Sri Lanka for Indian-origin people marked a new high in a relationship between the two neighbours.
Attending the ceremony via video link, the Prime Minister said India has kept its promise made to the people of Sri Lanka.
Sri Lankan Prime Minister Ranil Wickremesinghe was present at the ceremony at Dunsinane estate, Nuwara Eliya, along with ministers and Indian officials.
India handed over the first lot of houses built for Indian-origin people in Sri Lanka's tea plantation areas.
India had committed 60,000 houses, out of which 47,000 are ready, under the 'innovative Indian housing project', Modi said.
"Your roots are in India, they have grown in Sri Lanka. You have not just connected two countries, but also strengthened the hands of two great nations.... We are crafting a new future, a new high in India- Sri Lanka friendship," Modi told the gathering.