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Sri Lanka on Tuesday signed up for over € 60 million worth of financial help from the German government for post-tsunami reconstruction work, the Finance Ministry said.


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The package includes a € 49 million (Rs. 5.9 billion) grant for post-tsunami rehabilitation and € 13 million (Rs.


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1.6 billion) due this year as debt repayments from Sri Lanka to Germany, the statement said.
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Germany's large reconstruction bank, KfW, will disburse the grant to build houses, supply water and sanitation and infrastructure related to new settlements.

Funds allocated to housing activities will largely focus on rebuilding damaged houses in the island's east (Batticaloa and Ampara districts) under the owner constructed housing programme.

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The Batticaloa district will also get a new water supply scheme.

German funds will also go to renovate water supply schemes in Sri Lanka’s southern district of Galle.

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Sri Lanka is banking on US$ 3 billion in foreign aid to rebuild infrastructure facilities wiped off during last Dec.'s tsunami which killed around 31,000 people and left a million homeless.

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-LBO Newsdesk: lboemail@vanguar

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