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India will lend Sri Lanka $400 million for infrastructure projects, Prime Minister Narendra Modi said on Friday after talks with the island nation's new President Gotabaya Rajapaksa aimed at improving bilateral ties. Sri Lanka, located off the southern tip of India, has become an arena of competing influence between New Delhi and China, which has built ports, power stations and highways as part of President Xi Jinping's signature "Belt and Road Initiative", designed to boost trade and transport links across Asia.

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