The loan, which will set up a Spatial Information System to capture, analyse and display geographical information, was signed on Wednesday, the finance ministry said in a statement.

The loan is on easy payment terms with an interest rate of one percent per annum, repayable in 20 years inclusive of a grace period of ten years.

Director Geographical Information Systems L H Indrasiri told LBO on Wednesday that the two year project is due to begin in June this year.

The UDA, the Survey department and the Reconstruction and Development Agency (RADA) are involved in the project to provide large scale satellite maps to help develop the infrastructure base in affected areas.

"Satellite images will be used to create maps for the affected areas for better township development," Indrasiri said.

This satellite imagery data base will identify risk areas tending to natural disaster and existing development patterns in the areas where rehabilitation and new development projects are to take place.

"The system will cover the reconstruction range from Trincomalee to Galle. We will also develop maps the survey department has been unable to create so far,” Indrasiri said.

The GIS division of the Urban Development Authority has already completed maps for the Trincomalee metro urban centre.

"In the south, maps of 'Maha Matara Plan' and the 'Maha Galle Plan' has already been completed," Indrasiri said.

Indrasiri says the division is in the process of gathering and analyzing data on Batticaloa and Ampara tsunami affected areas.

The UDA will also house the database of the system, with about 51 percent of the funds to be channeled through the authority.

Sri Lanka, one of the worst hit by the December 2004 Asian tsunami, lost an estimated 31,000 people while another million were left homeless.

According to December 2006 data, only 56 percent of the estimated 100,000 devastated homes have been rebuilt. Thousands still live in tents.