Colombo (ANTARA News/Asia Pulse) - Sri Lanka's government is to accept a US$500 million 20-year loan from China to build 100,000 low cost houses for state sector employees, shanty dwellers and people affected by disasters, the Cabinet office said.

A Cabinet memorandum on the project said the loan was to be arranged by state-owned China Shenyang International Economic and Technical Corporation (CSYIC), which will commence construction work on November 2009 on 10,000 houses initially.

Under the scheme, low-cost housing units would be offered to tsunami and other disaster victims for shanty relocation purposes and as official quarters for state sector employees.