Coast Guard ships and aircraft of the two countries took part in the exercise around five nautical miles off the city coast in the Bay of Bengal.
The Republic Day parade, which will begin at around 1030 am, will be a unique mix of the country's military prowess and cultural diversity, depicting the country's growing indigenous capabilities, Nari Shakti and emergence of a 'New India'.
The Panama registered tanker New Diamond was carrying 270,000 metric tonnes of crude oil from Kuwait to India when its engine room caught fire off the coast of Sangamankanda in the eastern district of Ampara, Sri Lankan Navy spokesman Capt Indika Silva said.
The navy said that so far the 270,000 metric tonnes of crude oil it was carrying had not been affected by the fire.