In 2010, the government had announced plan to construct 50,000 houses for resettling and rehabilitating people displaced in northern and eastern provinces during the civil war in Sri Lanka.
In the first phase of the project, India constructed 1,000 houses for war-affected victims in the Northern province and 10,000 houses were built under the second phase of the project till December 2013.
Sources said a target of constructing 16,000 houses has been set for 2014.
Sources said financial support for the construction of the houses is given to communities concerned so that it is upto their needs.
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They said the beneficiaries are selected through a "rigorous" and "transparent" process. Those who suffered most because of violence are given preference.
Sri Lankan authorities are involved in identification of the beneficiaries. After selection, the lists are provided to district administration through implementing agencies which are essentially Sri Lanka-based entities.
The lists are put up in government offices so that the selection is open to scrutiny.