The elite forces of the two countries are engaged in war games which started on December 3 and is scheduled to get over on December 24 at the Special Forces Training Centre in Nahan, army officials said.
The two countries are expected to share their experiences in counter terrorism operations of the last two-three decades, they said.
Incidentally, Army Chief Gen Bikram Singh is in on a visit to Sri Lanka.
The Sri Lankan commandos are believed to be one of the best in the business as they were actively involved in the over 25-year-old-war with LTTE cadres.
The exercises were earlier scheduled to be held somewhere in the southern part of the country but later the venue was shifted probably in view of the sensitivities involved there, they said.
Political parties in Tamil Nadu have been protesting against having any defence ties with Sri Lanka. Chief Minister J Jayalalitha had also written to Prime Minister Manmohan Singh to immediately halt the training of Sri Lankan officers in Tamil Nadu and send them back.
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In July, nine Sri Lankan defence personnel were removed from a training institution in Tambaram to Bangalore after opposition from political parties in the state.
Despite opposition from political parties in Tamil Nadu, the Ministry has decided that it will continue to train Sri Lankan defence personnel at its facilities and have military ties with the Lankan forces.
The Navy also plans to hold the 'SLINEX' exercises with their Sri Lankan counterparts but it would be held away from the coastline with Tamil Nadu, Kerala, Andhra Pradesh and Karnataka.