The meeting was co-chaired by Foreign Minister NP Saud and his Sri Lankan counterpart Ali Sabry, who arrived in Kathmandu on Wednesday.
Both sides discussed matters relating to mutual interest as well as opening new vistas of cooperation, said officials.
The Nepali delegation comprised Foreign Minister Saud, Foreign Secretary Sewa Lamsal, Nepali Ambassador to Sri Lanka Basudev Mishra, and senior officials from ministries of commerce, home and foreign affairs.