Responding to Rajapaksa's resignation as Sri Lanka's prime minister and Ranil Wickremesinghe's re-appointment to the post, India's Ministry of External Affairs (MEA) said it "welcomes the resolution of the political situation in Sri Lanka".
The re-appointment of Wickremesinghe comes after almost two months of political turmoil which saw the dissolution of parliament, widespread reports of bribery and parliamentary violence.
The crisis resulted in a declining rupee, downgrading of the country's sovereign by credit agencies and a suspension of international funds.
“As a close neighbour and true friend, India welcomes the resolution of the political situation in Sri Lanka. This is a reflection of the maturity demonstrated by all political forces, and also of the resilience of Sri Lankan democracy and its institutions,” India's MEA spokesperson, Raveesh Kumar said.
"India remains committed to taking forward its people-oriented development projects in Sri Lanka."
“We are confident that India-Sri Lanka relations will continue to move on an upward trajectory,” he added.