0 billion rupee) project the country's aid agency said.
Japan International Co-operation Agency (JICA) which administers Japanese aid said a concessionary loan was agreement was signed with Sri Lanka's Treasury secretary P B Jayasundera.
The project will improve the mobility of people and farmers will be able to cultivate more land Akira Shimura, chief representative in Colombo of the JICA said in a statement.
The loan was in response to a May 2011 request from Sri Lanka for emergency flood reconstruction aid.
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The emergency assistance also covers capacity development at Sri Lanka's disaster management, meteorology, irrigation and building research agencies, allowing them to better cope with future disasters