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