The China Charity Federation will use donations of Chinese people to build a new village in Sri Lanka 's southern Galle district for the displaced and the homeless due to last year's tsunami.

According to a memorandum of understanding signed Tuesday by the China Charity Federation and the Sri Lankan government, China Sri Lanka Friendship Village will be built in Akmeena of Galle district, about 100 kilometers south of Colombo.

The memorandum said the project will be completed within nine months. The houses in the village will have minimum floor area of 500 square feet (about 46.5 square meters) with two bed rooms, a living room, kitchen and toilet.

The Sri Lankan government will provide land for the construction of houses in the village, with one house costing about 4,000 US dollars.

The China Charity Federation had provided 10 million yuan ( about 1.21 million US dollars) of emergency aid to Sri Lanka after the tsunami hit the country in December 2004.

More than 30,000 people were killed and up to 1 million were displaced in the disaster.