The two Offshore Patrol Vessels would be built by the Goa-based defence PSU Goa Shipyard Limited and they are expected to be delivered to the Island nation by 2017-18 timeframe, sources said here.
The development comes at a time when political parties in Tamil Nadu have been demanding ceasing of defence ties with that country.
Centre has been very sympathetic towards the demands made by them and have shifted the Sri Lankan defence personnel from training institutions in that state and also decided to hold exercises with them away from four south Indian states.
Defence Minister A K Antony has directed military and civilian officials to be sensitive towards these sentiments and emotions mostly flamed after the frequent alleged incidents of arrest of Indian fishermen from Tamil Nadu by the Sri Lankan Navy.
However, despite the objections from these political parties, the Government of India at the highest level has decided to continue close ties with the Sri Lankan armed forces.