The Indian High Commissioner to Sri Lanka, YK Sinha, has formally handed over an Indian coast guard ship to Sri Lanka's navy.
The ship was initially given to Sri Lanka in 2006 " in appreciation of the Sri Lanka Navy’s efforts to maintain the maritime security in the region", the Daily Mirror reported.
Defence Ministry Secretary B Basnayake accepted the ship on behalf of the Sri Lankan government.
Sri Lanka's navy is regularly accused of attacking Indian fishermen from Tamil Nadu, worsening an already tense diplomatic relationship with the southern Indian state.
Only earlier this week, twelve Tamil Nadu fishermen reported being attacked by Sri Lankan navy personnel.
Talks between the two countries to end the violence and damage to the livelihoods of the fishermen have proved futile.
Earlier this year, the now prime minister, Ranil Wickremesinghe was fiercely criticised by Indian officials for apparently justifying the Sri Lankan navy's use of force against the fishermen.
"If someone tries to break into my house, I can shoot. If he gets killed...Law allows me to do that," Mr Wickremesinghe told an India TV programme.
12 Tamil Nadu fishermen attacked by Sri Lankan navy (25 August 2015)
India criticises Sri Lanka’s ‘use of force’ against Tamil Nadu fishermen (24 Jun 2015)
Sri Lanka PM reiterates navy can shoot Indian fishermen in its waters (16 March 2015)
Indian parliament expresses outrage over Sri Lankan PM defending shooting of fishermen (09 March 2015)