Prime Minister Narendra Modi has said global confidence in India has been restored and the world's engagement with the country is at a "new level" even as he assured Sri Lanka that steps would be taken to address its concerns over the huge bilateral trade imbalance.

Modi said this while asserting that India and Sri Lanka should move "boldly" to conclude a long pending Comprehensive Economic Partnership Agreement.

Stating that Sri Lanka has the potential to be India's "strongest economic partner" in the region, Modi said it should not worry about India's economic size.

In his address to Sri Lanka's business community at the Ceylon Chamber of Commerce here last night, the prime minister acknowledged that there were concerns in Sri Lanka about the huge trade imbalance.

"I am prepared to work with you to address them. I want balanced growth in trade. We will try to make it easier and smoother for you to access the Indian market," he said on the first day of his two-day visit to the country, the first by an Indian Prime Minister since 1987.