Visiting Chinese Defence Minister General Liang Guanglie pledged Yuan 75 million towards the project in the central district of Diyatalawa.
The Chinese defence minister's official visit here led to closer cooperation, Sri Lankan officials said today.
During his visit, Liang called on the President Mahinda Rajapaksa and the commanders of tri-forces.
Guanglie said that Chinese military cooperation with South Asian states is Intended for "maintaining regional security and stability and not targeted at any third party".
The visit came as China had pledged to provide Sri Lanka with USD 100 million assistance for Army welfare projects initiated by the Sri Lankan ministry of defence.
China will also grant USD 1.5 million dollars towards the modernisation of the Defence Services College for children of troops.