Moscow, Feb 9 (RIA Novosti) Russia will provide a loan of $300 million to Sri Lanka to help the island nation procure military equipment and technology to strengthen its armed forces.

Russia has agreed to give $300 million loan in ten years to buy armaments and dual-purpose technology for Sri Lanka's military, Russia's deputy finance minister Dmitry Pankin said Monday.

According to some sources, the arms deal will also cover extensive repairs of Russian military equipment previously delivered to Sri Lanka.

The deal comes when Sri Lankan President Mahinda Rajapaksa is on a working visit to Russia - the first in the history of bilateral relations.