Ahmadinejad, who arrived after a brief stop in Pakistan, was met by Sri Lankam President Mahinda Rajapaksa and other Cabinet officials, the Daily Mirror, a Sri Lankan newspaper, reported.

His Sri Lankan visit included the inauguration of the $450 million Uma Oya hydro power project to produce 100 megawatts of electricity annually and a $700 million upgrade of Sri Lanka's only oil refinery, the Daily Mirror report said.

Ahmadinejad's Pakistan visit Monday came as the two countries resolved issues with the $7.5 billion gas pipeline project, the state-run Associated Press of Pakistan reported. Iran also agreed to provide 1,100 MW of electricity to Pakistan to help it overcome power shortage.

The Iranian leader met with Pakistani leaders including Pakistani President Pervez Musharraf with whom he discussed issues faced by the Islamic world and cooperation among Iran, Pakistan and Afghanistan, the report said.

Iran gave a positive response to Pakistan's proposal to allow a gas pipeline through its territory to China, while Pakistan supported "Iran's use of nuclear energy for peaceful purposes, under the IAEA guidelines," the report said.

Ahmadinejad was to make a four-hour stop Tuesday in India, where his country's controversial nuclear program and the 1,620-mile Iran-Pakistan-India liquefied natural gas pipeline were to be discussed with Indian Prime Minister Manmohan Singh, the Press Trust of India reported.