Aug 21, Colombo: The Government of China has granted 7.41 billion rupees (about 66 million dollars) to renovate and upgrade facilities of hospitals in the war-ravaged Northern and Eastern provinces of Sri Lanka, the local media reported.

Secretary of the Health Ministry Dr. Ravindra Ruberu and the representative of China, Chairman of the China Aid Agency, Yang Lijing inked the agreement at the Health Ministry Friday.

The Chinese aid will be used for the procurement of medical equipment, construction of new buildings and to improve the existing facilities of the hospitals in the conflict-affected areas.

At the occasion the Health Secretary has said that the government has already started a programme to upgrade facilities in the hospitals in the North and East damaged by the war and the Chinese funds will accelerate the progress of the programme.

The Chinese official has said that his government is committed to provide aid for Sri Lanka's development.