COLOMBO: China’s President Xi Jinping held talks Tuesday with his Sri Lankan counterpart, seeking to strengthen defense ties with the strategically located Indian Ocean nation that could provoke unease in neighboring India.

China is increasingly asserting its influence in Sri Lanka, a midway point on one of the world’s busiest international shipping lanes.

It is already the largest investor, having financed the construction of a deep-sea port and an international airport.

During his visit Xi will kick off building work on a Beijing-funded $1.4 billion port city and launch Sri Lanka’s biggest electricity generator, a Chinese-funded 900-megawatt coal-fired power plant.

On Tuesday he met President Mahinda Rajapakse after a ceremonial welcome at the head of state’s seafront office in Colombo.

Xi will on Wednesday launch construction of the port city, which will include the country’s first Formula One track.

In a letter published on the front page of Sri Lanka’s state-run Daily News on Tuesday, Xi said he wants to “enhance exchanges and cooperation between us in maritime, business, infrastructure, defense, tourism and other areas.” The reference to defense came despite the repeated insistence of Sri Lankan officials that relations were based on commercial rather than security considerations, an apparent attempt to allay Indian fears.

Sri Lanka’s economic development minister Basil Rajapakse said ahead of the visit his country’s close ties with China should not be a cause for concern in India.

“We are looking for trade, investment and tourism,” minister Rajapakse said.

“India is also looking to China so I do not see anything wrong in our having close ties with them.”