The meeting took place at the 'India House' inside the premises of the Indian High Commission on the last day of Modi's Sri Lanka visit, the first by an Indian Prime Minister in over 25 years.
The meeting came in the backdrop of Rajapaksa's accusation that India, the US and European countries had a hand in his humiliating defeat in the January elections.
Rajapaksa, in an interview to the Hong Kong-based South China Morning Post, levelled allegations against the US and India and said they openly used their embassies to bring him down.
"Last of 40 plus engagements of 4 day - 3 country visit underway. PM @narendramodi meets Fmr Prez @PresRajapaksa," External Affairs Ministry Spokesperson Syed Akbaruddin tweeted with a picture of the two leaders.
Modi also met leaders of the Sri Lanka Muslim Congress here and discussed development cooperation opportunities.
A reception was also hosted in the Prime Minister's honour at the High Commission where Modi interacted with the guests.
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