"India and Sri Lanka don't have a land boundary but we are the closest neighbours in every sense," the PM said in Colombo.
Addressing the Sri Lankan parliament, PM Modi said that "I'm honored to be in this Parliament and conscious of its rich history".
"This parliament represents one of Asia's oldest democracies and one of its most vibrant," PM Modi said.
"The future that I dream of India is also the future I wish for our neighbors," the PM said.
READ ALSO: India, Sri Lanka sign 4 pacts during Modi visit
Talking about shared history of the two neighbours, PM Modi said that our relationship is "defined by the journey of Mahindra and Sanghamitta, they carried message of peace and tolerance".
"Sri Lanka is an inspiration for our region in human development. It is home to enterprise and skill and extraordinary intellectual heritage," the PM said.
"You have successfully defeated terrorism, you stand at a moment of historic opportunity," PM Modi said.
The PM emphasized upon Sri Lanka's diversity. "Recent elections in Sri Lanka have reflected the collective voice of the nation - the hope for change, reconciliation and unity," the PM said.
"The unity and integrity of Sri Lanka are paramount for India," PM Modi said.
The PM said that the world sees India as a frontier of economic opportunity, but our neighbours should have the first claim on India.
"Let us also work together to harness the vast potential of the ocean economy," the PM said.
PM Modi also hoped that Sri Lanka should benefit from the SAARC satellite to be launched by India this year.
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India to extend 'visa-on-arrival' facilities to Sri Lankans: PM Narendra Modi in Colombo
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